Does Rocket Lab Have ENOUGH MONEY to Build Neutron? ($RKLB Stock Analysis) – YouTube

Does Rocket Lab Have ENOUGH MONEY to Build Neutron? ($RKLB Stock Analysis)


  • Video Views: 3004
  • Published On: 2022-03-02 19:42:51
  • Video Published/Author: Launch Window Research
  • Video Duration: 00:27:39
  • Source: Watch on YouTube

In this video, we go through Rocket Lab’s financials (including Q4 earnings), to assess the fundamental health of the company.

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  1. I think the space force is going to need more small satellite to spy another countries is going to become more usable for them to have a small company to send satellite because it’s hard to spy on

  2. The assumption that it shouldn’t take more money than falcon 9 took is a bad assumption.
    Carbon fibre is a more expensive material.
    The teardrop shape is more complicated than a cylinder.
    The tooling required for building a carbon fibre rocket is not available off the shelf.
    The fairings are more complicated.
    No experience was gained by Rocket Lab to reduce Neutron’s costs during F9 development.
    Inflation in the last 10 years will inflate the cost of labor and supplies.
    700 mil might be enough, but to say 300 mil is a meet able goal is silly.
    Current burn rate is also a useless statistic. We KNOW their burnrate is about to explode.

  3. I'm a bit confused by Kenny's slides.

    1:42 "23 launches, which produced a revenue(s) about $34 million over 9 months?
    Where does he get $34M from and where does he get 9 months from? Also those 23 launches include test launches and failures. Rocket Lab has had 3 failures in the past (and as of today 21 successful launches)

    1:42 "That means about 4/3*34 = $45mil a year as an approximation"
    Again where does he get the $34M and 9 months?

    2:01 "Assume that 16 launches were executed in that year, that means that each launch earns RKLB about $3mil.
    What exactly are we talking about when he says "earns"? Is that revenue, gross profit, EBIT, EBITDA? If it is revenue, that number should be $7.5M not $3M

    2:05 "We assume that the rocket is not fully loaded with satellites"
    Why does that matter? The price per launch is $7.5M whether the rocket is jam packed full of satellites or is completely empty. The amount of satellites is irrelevant for rocket lab's revenue.

    2:56 point one
    Again it seems like he's making calculations per satellite which is irrelevant for the launch provider. Sometimes Electron launches 1 satellite per launch, that would mean the customer paid $7.5M minimum for the launch. Other times they launch 5 at the time, which means the $7.5M is divided (not always equally) by the number of sats. Again, this is irrelevant for the launch provider because at the end of the day, they'll get $7.5M in revenue.

    2:56 point two
    I'm completely confused by this calculation, where is he getting these numbers?

    3:23 "The firm is going to have 60-100 launches per year…"
    Uhm? Rocket Lab's electron is unlikely to ever reach that launch cadence especially with competition growing every single day. Even SpaceX doesn't have that launch cadence.

    3:23 "….about 50 small satellites per launch…."
    Again where does Kenny get 50 satellites? Electron usually delivers only a handful of satellites per launch and hasn't even come close to 50 satellites per launch. But again this is irrelevant for rocket lab, in fact the less satellites per launch the better 🙂

    3:32 point two
    Am I correct to assume that this calculation doesn't include Rocket Lab's space system division?

    Maybe I'm just completely misunderstanding Kenny, I would appreciate it if you could clear up my confusion 🙂

  4. When you talk about borrowing money, would it not be better to borrow now because of low interest rates and the value of the dollars that you are borrowing is being devalued. in the future, assuming there aren’t drastic increases in interest rates would this not be the best option?

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