Rocket Lab Q4 FY12/23 Earnings Review

A VC play with a tradable ticker.

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Stardust or Supernova, Time Will Tell

by Alex King

RocketLab ($RKLB) is not, on the face of it, a very good business. It consumes cash like it is going out of fashion and has no currently visible path to cash generation. Growth rates have been falling as has backlog. And the stock is languishing in the $4-8/share range, has been for the last two years nearly, way below the $10/share price at which owners of the prior holding company were able to sell when the stock listed in a SPAC process.

So, why bother owning this thing? Indeed, why would we include it as a member of our Inner Circle Defense Model Portfolio?

I’ll explain my own logic below - you can decide whether this is a good idea for you or not!