$Rocket Lab USA, Inc.(RKLB)$ As a large shareholder in RKLB, can someone explain why I should like the Iridium acquisition? We build rocket engines, not move into the crowded satellite communications space. What am I missing? I'm not selling, I'll hold and see, but I don't get it.
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.
RKLB is evolving beyond a low-margin rocket manufacturer because the real profit in space lies in high-margin satellite services, not launching them. By acquiring Iridium, Rocket Lab secures an established network with 2.5 million paying customers and highly protected, weather-resistant L-band spectrum [the blueprint]—completely avoiding the crowded consumer internet market dominated by Starlink. This allows Rocket Lab to use its own upcoming Neutron rockets to build and deploy its own next-generation "Flatellite" constellation at a fraction of the cost, turning the company into a highly profitable, vertically integrated aerospace giant with predictable, recurring revenue.
SEE THIS IN THE LONG RUN [Cool]