Investors rotating into cheaper stocks with more upside should ultimately benefit Rocket Lab and AST SpaceMobile. Both have already suffered major drawdowns. x.com 

Rocket Lab is a great company worth owning at a discount, and its elevated volatility pays well to wait for one. It is the only US public rocket company at scale, its backlog grows every quarter and revenue is up 55% year over year. Its implied volatility is among the highest in the space sector, with IV rank above 60%, while weekly EMA clouds are green and daily RSI just hit 44. x.com 

Rocket Lab still looks ridiculously expensive at 29 times forward sales against SpaceX at 22 times, even after a 65% fall. At 22 times, Rocket Lab would be roughly $38, and SpaceX would still be the pick. SpaceX also has better forward guidance; Rocket Lab's negative adjusted EBITDA makes sales multiples the valuation yardstick. x.com  x.com  x.com  x.com 

Good SpaceX earnings could help Rocket Lab lead the new-space sector higher with a rally as violent as its capitulation. Rocket Lab is the sector leader outside SpaceX; its RSI is extremely oversold, the lower Bollinger band is overstretched and MACD's negative divergence is subsiding. Three upside gaps lie at $55.25-59.18, $64.22-65.71 and $73.11-74.76. The highest should fill before year-end, though the exact date is hard to predict. x.com  x.com 

Rocket Lab will be a good investment because it does much more than launch rockets, though AST SpaceMobile looks like the better one. x.com 

Rocket Lab is still expensive at 30x next year's sales even after falling 60%. x.com 

Rocket Lab completing its $1.94 billion ATM to fund the Iridium deal removes an overhang that likely suppressed the whole space sector. As the lead high-beta space name, its ATM selling in a thin, risk-off market was magnified by algos into AST SpaceMobile and peers; that pressure should now ease. After nearly four months of losses from the SpaceX IPO, macro risk-off, low summer liquidity and share sales, a base is starting to form. Delays or macro risk could still weigh. x.com  x.com  x.com 

Rocket Lab's growing Space Systems business positions it to provide more than launches for the space economy. It generated $189.5M in Q2, 81% of revenue; if its pending Iridium acquisition closes, it would gain a global satellite communications network. At about $51, this is one of the most compelling long-term opportunities in the space sector over 3-5 years, provided it keeps executing. Neutron's launch has slipped to 2027, and execution risks remain. x.com  x.com  x.com 

Rocket Lab's roughly $80 billion valuation, including its newly announced $3 billion dilution, would require $3-4 billion in profit to be reasonable, and there is no scenario where it earns $3 billion within three years. The market can stay illogical longer than expected, so it could still run 50% before crashing 80%; the same applies to AST SpaceMobile. x.com  x.com 

Planet Labs has an excellent fundamental trend and is a long-term pick within the smaller-cap space theme, though it is less attractive than Rocket Lab on both fundamentals and technicals. The worst of the pain is likely done, even if more near-term shakeout comes. Rocket Lab tackles a much larger addressable market with near-flawless execution. x.com  x.com