Rocket Lab (RKLB) stock is grabbing headlines after a sharp pre-market rally as tensions escalate between SpaceX CEO Elon Musk and President Donald Trump. As the high-profile feud spills over into the space industry, investors appear to be shifting their attention and capital toward alternative space players like Rocket Lab. This shift in sentiment also helped lift RKLB shares nearly 6% in after-hours trading on Thursday. Meanwhile, other space-related stocks also saw gains, with AST SpaceMobile (ASTS) rising 1.75% and Virgin Galactic Holdings (SPCE) surging over 9%.
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For context, this development follows a heated online exchange between Musk and Trump. The clash began when Musk harshly criticized Trump’s “Big Beautiful Bill,” calling it a “pork-filled… abomination.” This feud threatens to derail several key U.S. space programs, potentially placing around $22 billion of SpaceX’s government contracts in jeopardy.
Rocket Lab Emerges as Winner
Musk’s announcement to decommission the SpaceX Dragon capsule, following Trump’s threat to cancel federal contracts, has sent ripples through the space industry. As uncertainty clouds SpaceX’s government ties, investors are eyeing Rocket Lab as a clear winner. With a growing launch portfolio, expanding satellite capabilities, and no political baggage, Rocket Lab is quickly gaining favor as a more stable, promising alternative in the competitive space sector.
Additionally, Rocket Lab is known for its consistent progress in satellite launches and expansion in space systems. The company is viewed as a viable competitor in the commercial and government space sectors, boosting its stock and investor confidence amid the turbulence surrounding its larger rival.
Is RKLB a Good Buy?
According to TipRanks, RKLB stock has received a Moderate Buy consensus rating, with nine Buys and four Holds assigned in the last three months. The average Rocket Lab stock price target is $28.73, suggesting a potential upside of 8.6% from the current level.
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