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 58% drop from its high on the Iridium deal financing is the entry for a five-year hold. The $8B Iridium acquisition adds a 66-satellite constellation with over $870M of annual revenue, turning a launch company into an end-to-end space business. Revenue grew 62% to $234M last quarter, backlog rose 137% to $2.36B with a record 90+ launches booked, Electron is 13 for 13 this year, and Neutron is targeted for the pad in Q4. x.com 

Rocket Lab's deal to buy Iridium partly with its own stock confirms the stock is worth very little. Per @junkbondinvest, Rocket Lab is paying $8 billion in enterprise value, $54 a share, half in cash and half in Rocket Lab stock. Using an overvalued currency to buy something with real value is accretive and minimizes the loss for shareholders, following the playbook of SPCX buying Cursor. x.com  x.com 

Rocket Lab's roughly $8B Iridium purchase changes what it is: it now owns the only global satellite network and the spectrum under it, so it can design, build, launch and operate under one roof. The deal bolts about $872M of revenue at a 57% margin onto a story that was mostly backlog. The rocket gets headlines; the network is the toll. x.com 

Rocket Lab's $8 billion purchase of Iridium creates the Pentagon's preferred SpaceX alternative that actually wins contracts. Combining launch capability with Iridium's legacy low-Earth-orbit constellation and Pentagon relationships is the real story behind the deal, which @lorengrush covers. The boring space trade outperforms. x.com 

Rocket Lab's vertical integration is structurally diluting the margins that made it special. Q3 GAAP gross margin is guided to 29-31% from 36.1%, and purchase accounting from Mynaric and Motiv explains at most a third of the drop. Per management, components earn over 70% margins while satellite platforms run in the mid-30s, and the growth is in platforms. Neutron sells full-price $50-55M slots but has never flown, so its value as a second launch source remains unrealized. x.com 

Rocket Lab's record Q2 and Iridium deal show it becoming an end-to-end space and defense platform that can capture more value than a launch-only company. Q2 revenue hit a record $234M, up 62%, and backlog a record $2.36B after over $1B of new contracts. Iridium adds over $870M of annual L-band revenue tied to government and enterprise. Launch revenue fell 30% sequentially largely because more HASTE defense work is recognized over time; Mynaric integration weighs on near-term margins. x.com 

Rocket Lab's Iridium deal should be great for the company if it maintains Iridium's revenue and takes out some costs. A pro forma analysis on consensus estimates shows Iridium improves Rocket Lab's margins and profitability in exchange for slower top-line growth. Per the proxy, Street consensus appears to have baked in and discounted Iridium's projections including Aireon, though the pro forma figures exclude the $367M paid to NAV Canada. x.com  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 

Iridium's L-band spectrum, PNT and acquired Aireon still have substantial value, despite stalled growth and rising leverage. Third-quarter revenue rose 8% to $245.7 million and subscribers grew 6%; reported net income nearly tripled to $106.9 million, with the attached results attributing much of that gain to the Aireon acquisition. x.com