In a decade or two, people might be able to take vacations on the moon, companies could mine its resources, and shuttles might travel to Mars and beyond.
The allure of space stocks is that these things are no longer in the realm of science fiction
That excitement, combined with a desire to invest in businesses that could lay claim to parts of space, drove Rocket Lab (NASDAQ: RKLB) and Planet Labs (NYSE: PL) to soar in 2025, though both have dipped in the past month. The record-breaking initial public offering (IPO) of Space Exploration Technologies (NASDAQ: SPCX), or SpaceX, added fuel to what was already a space-investing frenzy. That extreme speculation is the main reason I won’t buy Rocket Lab or Planet Labs in 2026.
It is worth having them on your radar, but as I’ll explore in this article, there’s too much froth in this high-risk sector right now, and their sky-high valuations are based on relatively low revenues. Given that the Federal Reserve may raise interest rates this year, which could reduce risk appetite, I want to see whether some speculative money falls away and companies deliver more concrete results before I invest. Rocket Lab Rocket Lab provides space launches and builds satellites and space equipment for government and commercial use.