We Need To Talk About Rocket Lab Stock After This Massive Run!

Summary

In this video, Dave discusses the recent surge in Rocket Lab's stock price, following an impressive earnings call, and reflects on his long-term investment journey with the company. He highlights the significant growth of Rocket Lab, from a stagnant stock to a sharp rise in value, and shares his personal thoughts on the company's valuation and future prospects. Emphasizing that this is not financial advice, Dave considers whether the stock is currently overvalued, whether to sell, and how market trends may impact the stock moving forward. He invites viewers to share their own opinions on Rocket Lab's future.

Takeaways

• 😀 Rocket Lab stock saw a significant increase after a strong earnings call, with the stock price rising sharply in a short period of time.
• 😀 Peter Beck and his family own around 10.3% of Rocket Lab through a trust, briefly making him a billionaire after the company reached a $1 billion valuation.
• 😀 The community of Rocket Lab investors is very active, with over $17 million in shares collectively owned by around 84 people in the YouTube channel's Discord server.
• 😀 Despite Rocket Lab's stock rise, the presenter emphasizes that this is not financial advice and encourages everyone to make their own investment decisions.
• 😀 The stock's valuation appears to have surpassed its intrinsic value, raising concerns about whether it's overvalued at current levels.
• 😀 The presenter acknowledges the importance of Peter Beck's leadership but maintains that stock prices should be based on value, not just enthusiasm for the company.
• 😀 Despite the stock's strong performance, the presenter suggests holding onto shares rather than trying to time the market, as the stock could continue to rise.
• 😀 The presenter points out that while Rocket Lab's growth curve looks promising, predicting stock movements is difficult, and there's a risk of it being overvalued now.
• 😀 The growth of Rocket Lab’s underlying business, such as Neutron and Space Systems, continues to build the intrinsic value of the company, even as the stock price fluctuates.
• 😀 The presenter plans to hold most of their shares and suggests that a long-term perspective may be the best approach, despite the current market conditions.
• 😀 There's a focus on financial metrics and revenue growth as essential factors in determining Rocket Lab's long-term potential, rather than basing decisions on hype or speculation.

Q & A

What is the primary reason for Rocket Lab's recent stock surge?

The recent surge in Rocket Lab’s stock is primarily attributed to the positive reaction to the company’s earnings call, along with the overall market sentiment and growth prospects for Rocket Lab, especially with Neutron’s progress and the expansion of Space Systems.

Why does Dave mention that his opinions are not financial advice?

Dave emphasizes that his opinions are personal and unfiltered, and encourages viewers to make their own investment decisions based on their research. He clarifies that he is not attempting to provide financial advice, just sharing his perspective on the stock.

How long did Rocket Lab’s stock remain stagnant before the recent rise?

Rocket Lab's stock remained stagnant for about two years, with limited movement in price. During this time, the company was steadily working on improving its infrastructure and expanding its capabilities.

How much of Rocket Lab’s stock is owned by Peter Beck and his family?

Peter Beck and his family own approximately 10.3% of Rocket Lab through a trust, which contributed to his brief status as a billionaire when the company reached a $1 billion valuation.

What is the significance of the community’s collective ownership of Rocket Lab shares?

The collective ownership of Rocket Lab shares among the community highlights the impact of retail investors. Through Dave's Discord server, members track their investments, with $17 million in Rocket Lab shares owned by just 84 members, showcasing the strength and influence of small investors.

What concerns does Dave have about Rocket Lab’s current stock price?

Dave expresses concerns that the stock price may have surpassed the intrinsic value of the company. While he is bullish on Rocket Lab’s future, he acknowledges that the stock might be slightly overvalued at the moment based on its current price compared to its underlying value.

Why does Dave choose not to sell his shares despite the stock price reaching high levels?

Dave chooses not to sell his shares because he believes in Rocket Lab’s long-term growth potential, especially with ongoing projects like Neutron and Space Systems. He also highlights that stock prices can be volatile, and selling now might mean missing out on further gains if the price continues to rise.

How does Dave feel about Rocket Lab’s leadership under Peter Beck?

Dave holds Peter Beck in high regard, calling him an 'amazing leader and rocket engineer.' Dave is confident in the leadership of the company, which reinforces his belief in Rocket Lab's long-term prospects.

What does Dave say about selling shares after a large price increase?

Dave acknowledges that selling shares after a large price increase is a valid choice for some investors who want to lock in profits. He mentions that he personally doesn’t blame anyone for selling, especially after waiting through years of low stock movement.

How does Dave approach investment decisions regarding Rocket Lab’s stock?

Dave’s approach to investing in Rocket Lab is grounded in balancing long-term growth potential with valuation. While he is optimistic about the company, he makes sure not to get carried away by hype, carefully considering whether the stock is fairly priced before making any major moves.