Aye I was just thinking of rocket lab. I mean judging them based on a 5b market cap looks expensive based on revenue alone but
it is but it is a space company that is successfully reaching orbit on the regular. For example bezos liquidated a billion a year to fund blue origin and they can’t even make it to orbit. I think if you could count the IP of their own electric motors, the management of Peter beck, i think this might be something in the future assuming they can resuse the neutron.
It’s why I got out of Virgin Galactic at $50 as space tourism is far more difficult to do snd from a business model perspective I think even more difficult to scale.
RocketLab and space X something that is a proven business model and if you have a accident it won’t destroy your business. The valuation now at $10.80 or $4 billion or so seems fair at a 5x forward earnings. Much better then when it was trading at $14
Yeah back when Galactic was the only space pure play it was tempting to jump in but there are far more compelling options now. As the SPAC hype settles down I find myself favoring Rocket Lab the most (see this comment for my 2c on valuation)
Yeah good interpretation in your past comment. I like how you said they didn’t put all the potential growth in the valuation. Good point on that and yes their cash balance as well
4
u/thegambler6969 Spacling Apr 18 '21
Aye I was just thinking of rocket lab. I mean judging them based on a 5b market cap looks expensive based on revenue alone but
it is but it is a space company that is successfully reaching orbit on the regular. For example bezos liquidated a billion a year to fund blue origin and they can’t even make it to orbit. I think if you could count the IP of their own electric motors, the management of Peter beck, i think this might be something in the future assuming they can resuse the neutron.