SpaceX vs. Rocket Lab: Which Space Stock Should You Buy?

Lots of people are thinking about buying "space stocks" (shares of companies that go to space). But putting all your money into this area today is risky because most rocket-company stocks go up and down a lot.

Two stocks many investors are watching are:

• Space Exploration Technologies (ticker: SPCX) — we’ll call it SpaceX
• Rocket Lab (ticker: RKLB)

Here’s a simple look at which one seems like the better buy right now.

Important: Space stocks are volatile. That means their prices can swing wildly. Be careful!

The Case for SpaceX

SpaceX started as a rocket company. Now it’s growing into a giant tech company aiming at both space and artificial intelligence (AI — computers that act smart).

Its big goals include:

• Colonizing Mars (building a human settlement on the red planet)
• Launching "orbital data centers" (computer buildings in space)
• Growing its Starlink satellite internet business (internet from space)
• Building a "sovereign AI" platform — meaning SpaceX would control the AI brain, the chip designs, the chip manufacturing, and everything in between

Why do some investors like it?

• It’s trying huge things like Starship, a rocket it says will cut the cost of putting stuff in orbit by at least 90%
• It plans a group of data-center satellites
• Research firm Morningstar says Starlink’s market could be worth $129 billion

What it’s already doing:

• 12 million Starlink internet subscribers
• $1.9 billion operating profit from Starlink in the latest quarter
• A "neocloud" business (renting data-center space on Earth for now) with customers like Alphabet and Anthropic — already signed $81 billion in contracts
• Possible future merge with Elon Musk’s Tesla, which could add self-driving cars and human-like robots (a market possibly worth $3 trillion by 2050 per Morgan Stanley)

The Case for Rocket Lab

Rocket Lab overlaps with SpaceX a bit, but it is NOT building AI data centers or merging with a robot company (at least not now).

Instead, it focuses on:

• Launching rockets for customers
• Expanding its satellite communication network by buying Iridium Communications

Details on the Iridium deal:

• Rocket Lab will pay $8 billion
• Deal expected to close next year
• Adds 2.5 million satellite-based mobile subscribers
• Iridium serves mostly private and government users (different from Starlink’s home internet users)
• Iridium made $114 million profit last year

Rocket Lab’s main business is sending payloads (cargo) to space:

• In Q1 it signed 31 new launch deals — more than all of 2025
• Big contracts already signed:
  • U.S. government satellite system for the proposed Golden Dome missile defense
  • Missile tracking
  • Military communications

Verdict: Rocket Lab Is the Better Stock to Buy Right Now

Let’s compare the numbers:

Rocket Lab

• Not profitable yet
• Lost $0.07 per share in Q1 (better than $0.12 loss a year earlier)
• Revenue up 64% to $200 million

SpaceX

• Sales up only 15% in Q1 to $4.7 billion
• Lost $3.29 per share (much worse than $0.41 loss a year earlier)
• Huge spending: $10 billion in capital costs in Q1 2026 alone vs $27 billion all of 2025

Important: SpaceX’s giant losses come from spending massively on building things. Its stock also looks expensive — price-to-sales (P/S) ratio about 94 vs Rocket Lab’s 66. P/S is a way to see if a stock costs too much compared to its sales.

Neither stock is cheap, but SpaceX costs even more relative to its sales while losing more money. So Rocket Lab looks like the better space stock to buy right now.

Missed Nvidia in 2009? This Rare Signal Is Flashing Again

In 2009, a "Double Down" signal appeared for a small chipmaker called Nvidia. If you’d put $5,000 in then, you’d have about $2,750,105 today.*

Now, for the first time in years, the same "Total Conviction" signal is flashing for a company 1/100th Nvidia’s size. It’s in the $1.8 trillion space race, and its stock is recently 20% below its high.

Stock Advisor returns as of July 13, 2026

Summary

• Space stocks are exciting but risky and shaky.
• SpaceX has giant dreams (Mars, AI, Starlink) and big contracts, but its losses are widening and its stock is priced high.
• Rocket Lab is smaller, not yet profitable, but improving, growing fast, and cheaper relative to sales.
• Based on the info, Rocket Lab is the better buy right now.

FAQ

1. What is a space stock?
A share you can buy in a company that builds rockets, satellites, or space internet.

2. Why is SpaceX losing so much money?
It is spending huge amounts (like $10 billion in one quarter) to build rockets, satellites, and AI projects.

3. What does Rocket Lab do differently?
It mainly launches rockets for others and is buying Iridium to grow its satellite phone/internet network for governments and businesses.

4. What does "P/S ratio" mean?
Price-to-sales ratio: how much the stock costs compared to the company’s total sales. Lower can mean less expensive.

5. Is either company safe to buy?
Both are risky and not cheap. Rocket Lab is judged better value right now, but prices can still drop.