alt Hacker NewsWhy was Uber valued in billions for years while making zero profit?
Why was Amazon valued at billions while making zero profit?
The stock market prices companies by many factors, revenue and profit are factors but so is growth.
Utilities companies make lots of profits but they are valued badly because they don’t grow at all!
Markets are forward looking and space is seen as a huge growth driver for the future, also RocketLab has been growing their top line revenue massively over the last few years.
Uber and Amazon made zero profit, but a lot of revenue. That's very different from losing money on fairly little revenue
But RocketLab did have five years of strong revenue growth. And they have a lower PS ratio than SpaceX. So at least compared to industry-rivals the valuation is justified