Rocket Lab: 36x Forward P/S Looks Like A Valuation Trap

The Asian Investor 32.96K Followers Follow Summary Rocket Lab Corporation delivered 62% year-over-year revenue growth in Q2 and signed new contracts in the second quarter that added to its revenue backlog. Despite strong results, RKLB shares remain expensive based on forward revenue projections, with significant growth already priced in. RKLB shares fell 7% post-earnings (in the after-hours market), reflecting market concerns about valuation and EBITDA guidance. While the Space Systems segment drove 94% year-over-year growth, and the Neutron rocket launch in Q4 could be a catalyst, the overall risk/reward remains unattractive at the current valuation. yalax/iStock via Getty Images Rocket Lab Corporation ( RKLB ) shares slid more than 7% in the after-hours market after the space technology company reported better-than-expected results for its second fiscal quarter on Monday. While the market was disappointed with This article was written by The Asian Investor 32.96K Followers Follow I am interested in a lot of technology and AI stocks like Google, Nvidia, AMD, Tesla and Amazon. Analyst’s Disclosure: I/we have a beneficial long position in the shares of SPCX either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.