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I know you want to invest in SpaceX I
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want to invest in SpaceX too but SpaceX
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is not a public company the only way to
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invest in SpaceX is if you are an
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accredited investor or if you know
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somebody who knows Elon and I don't know
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anybody who knows Elon and because
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you're watching this video I assume you
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don't either so what is our next best
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option what is that stock that can give
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us SpaceX like exposure and the answer
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is rocket lab
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[Music]
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I have been following rocket lab for a
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long time pre IO it was one of those
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companies that caught my eye when I was
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trying to find something to get into the
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space sector I've always been very
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bullish about space and I really do
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believe that that is a new industry in a
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nent stage right now it is just starting
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off it's the first Innings of that
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industry it very recently started
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commercializing and there is a long way
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for it to grow
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[Music]
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rocket lab is widely known as a space
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launch company but more than half of its
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Revenue actually comes from a Space
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Systems business the business that
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builds satellites and other space
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systems for other people rocket lab
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aspires to be an end to-end space
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company which means that if you want to
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launch a satellite into space and you
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reach out to Rocket lab not only will
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they build it but they will launch the
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satellite and help you get access of how
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to use that satellite in orbit you can
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literally go to Rocket lab's website
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right now now fill up a form and sign up
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for a satellite launch the shortest time
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that rocket lab has launched satellite
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from contract to launch is 8 weeks yes 8
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weeks that is how quickly they can
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launch a rocket before I share more
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about rocket lab I also want to point
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out that this is not a recommendation
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I'm just sharing my research of what I'm
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doing with rocket lab if you want to
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invest in rocket lab I would request you
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to please do your own due diligence
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before investing in this
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stock rocket lab is a leader in small
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rocket launches it counts both
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government agencies and Commercial
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businesses as its clients as well as it
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continues to work with NASA and the
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Department of Defense rocket lab's
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business is also going gang busters this
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year so far rocket lab has signed 17
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contracts totaling $141 million it is
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the third most frequently launched
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rocket globally in 2024 it was fourth
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previously 100% increase in launch rate
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in the first half of 2024 as compared to
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the second half of 2023 electron has
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accounted for 64% of all nons SpaceX
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orbital us launches in 2024 so
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far now let's take a deeper look into
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the launch business by looking at how
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electron is doing as mentioned earlier
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it is the Undisputed leader in small
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rocket launches rocket lab also
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continues to scale the electron rocket
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very quickly if you look at this chart
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you will see that rocket lab has reached
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50 launches faster than any commercially
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developed rocket in history and is on
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track for fastest 200 as well launching
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with electron gives the customer the
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ability to launch the satellite in a
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very specific orbit this is something
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that rocket lab has proven to do
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extremely extremely well when it
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delivered electron within 8 m of the
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target industry margin for deployment is
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typically 15 km this makes rocket lab
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the preferred wendor for clients who
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want to deploy the satellites in a very
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specific orbit
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now let's talk about neutrons something
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that everybody is really excited about
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and something that I have been really
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looking out for a lot of people are
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frustrated with why investors are paying
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so much attention to rocket lab's launch
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business even though it makes most of
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its revenue from the Space Systems
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business the reason for that is because
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of neutron rocket lab announced Neutron
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and set itself as a competitor with
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SpaceX the promise is Neutron so you
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better deliver that once you have the
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vehicle to get into orbit you can do all
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sorts of things but you have to first
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get that vehicle and Rocket lab promised
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that vehicle just around the time it
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came public so it
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got mixed with the rocket lab story and
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Rocket lab you know as Peter Beck
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himself said you know having rocket in
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the name does not help but you know it's
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just people just think rocket lab is a
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launch company which is really it's not
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it's an end to-end space company that
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makes space more accessible as far as
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Rocket devop up in timelines go Neutron
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seems to be doing quite well it's been
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4.3 years since Peter Breck announced
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Neutron and that is still below most
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other rockets that we can see on this
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chart electron is an outlier they got
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the rocket flying within 2.8 years but
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you know Neutron being a far more
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complicated completely reusable rocket
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it's going to be a lot more difficult to
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make that but as you can see that you
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know Neutron is still performing better
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than Falcon 9 and New Glen Etc which
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have taken a lot longer to be developed
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the hot test fire which I'm just going
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to talk about in a minute has been
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successful which means that we will see
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neutron have a test flight sometime
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hopefully this year which also means
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that you know if things go well they
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could actually be successful and
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approved by the end of this year or it
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might go into 2025 but it doesn't look
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that far away it does look like we see a
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lot more action from Neutron going
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forward in terms of development status
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uh rocket lab has continuously been
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posting pictures of the development on
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their social media so you will see
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various pictures come out about pieces
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of the rocket itself so here you can see
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the fairing that they are showing uh few
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of Parts as there as well as
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infrastructure where they're building uh
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the launch pad itself they also built a
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robot that builds that basically 3D
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prints the outer shell of the rocket
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itself so that is pretty cool so they're
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they're doing various things to automate
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things and move things fast and building
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infastructure to get to a place where
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they can start doing flight tests as far
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as Archimedes engine is concerned the
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testing recently concluded with the
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engine firing 102% throttle which means
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that the engine is ready to go the next
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engine is already coming off the
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production line and the next five
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engines are already being built this
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means that rocket lab is rapidly
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expanding its engine manufacturing to
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build more rockets and get them flying
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as soon as possible once Neutron is
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certified rocket lab will start
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delivering cargo as well as humans to
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space as I mentioned the Space Systems
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business is the largest part of Rocket
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lab's business if you want to be an end
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to-end space company it's very important
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that you solve all pieces of the you
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have to solve for the entire Pipeline
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and that is what rocket lab is doing as
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you can see it has more than 720 million
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in contract value of satellites in
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development production and operation and
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you can also see that these clients are
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from Vari backgrounds being NASA as well
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as from V which is a private company as
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well as globar which is a public company
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as well as space force which is a
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government contract rocket lab recently
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announced that it completed the
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manufacturing of twin satellites for
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NASA's Mars mission this news caught a
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little bit of fire a lot of people
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believe that the most recent rally in
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the stock has come because of this news
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I happen to believe that that rally came
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out of the fact that Peter Beck
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mentioned something about rocket lab
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building its own constellation I'll talk
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more about that at the end of the video
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with the mar satellites rocket lab again
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shows that how fast and how quick it is
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at delivering it work it designed built
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and tested the two satellites in just 3
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years from contract award these two Mars
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satellites are scheduled to launch on
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Blue origins new Glen rocket before the
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Mars Transit window closes later this
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year
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a lot of people would not beg rocket lab
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to be a chips company but rocket lab
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manufactures solar panels to be used in
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space areas and these are as good as
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microchips which is why rocket lab
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recently received $ 49.4 million as part
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of the chips act These funds would help
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rocket lab further expand their presence
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in Albuquerque and increase
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manufacturing capacity of space grade
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solar cells
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rocket lab has also been part of V
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space's mission where they are trying to
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manufacture Pharmaceuticals in space
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space manufacturing is a very
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interesting space and there is a company
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that I like about that and I'll make a
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video about that in the future but there
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is a lot of different products that are
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better manufactured in zero gravity a
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few examples that I can give you is uh
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some fiber optics are better
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manufactured in space at the same time
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3D manufacturing human organs is better
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done in Space the reason for that is
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when they TR to 3D manufacture human
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organs they tend to sit down because of
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the weight of the gravity but when doing
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it in space there is no gravity so it's
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able to build the natural volume that
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any given organ needs which is why space
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manufacturing is going to continue to
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grow into a big business and we will
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manufacture things in space and bring it
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back down to Earth because some of those
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things would be that valuable V Space is
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trying to manufacture Pharmaceuticals in
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Space and Rocket lab is a launch partner
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in this venture
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rocket lab has also been selected by
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multiple companies that are building
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constellations with a small rocket
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launch it is possible for these
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companies to launch the satellites in a
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precise orbit which is something these
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constellations really need they have a
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contract with Scorpios for $55 million
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they also have a contract with thunder
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worth $143
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million so we spoke about how rocket lab
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is a rocket launch company and also a
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Space Systems company and its goal is to
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be an end to-end space company in the
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most recent earnings report this slide
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caught my attention as you can see that
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rocket lab has listed three different
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parts of its business we've already
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spoken about the launch business as well
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as the Space Systems business but rocket
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laab is now pointing at something which
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is called the space data and services
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business so let's talk about this as far
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as the Rockets are concerned you need
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something to get satellites into orbit
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rocket lab has that figured out with
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electron and neutron is going to come
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online soon the next is the spacecrafts
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rocket lab has that covered with their
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Space Systems business they build
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spacecrafts for a lot of different
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companies they can build spacecraft for
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themselves too and Now Rocket lab is
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trying to get into this new space which
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is the space data and services business
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the reason I'm excited about this
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business is because as far as the rocket
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business and the Space Systems business
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are concerned they are relatively lower
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margin businesses but once you get into
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the data and services side of the
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business you could charge a much higher
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margin so it sounds like rocket lab is
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going in that direction rocket lab CEO
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Peter Beck also mentioned during the
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earnings call that rocket lab is now
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planning to build its own constellation
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he said that rocket lab is in a better
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place to do something like this given
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its end to end space business where they
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can build the satellites themselves
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launch it themselves and they don't have
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to wait in que to be able to get launch
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services or the satellites from anyone
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not much has been shared about rocket
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lab's own constellation but I believe it
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would be a B2B kind of constellation
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where it does multiple things at once so
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it could be a communication satellite as
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well as a Earth observation
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satellite as I mentioned earlier rocket
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lab's business is doing extremely
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extremely well in the most recent
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quarter they made $106 million Revenue
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which is the highest quarterly Revenue
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till date that Revenue was also a 15%
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increase quarter over quarter and a 71%
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increase year-over-year the backlog has
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grown to $1,067 million as of Q2 2024 as
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you can see here for the most recent
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quarter 76.9 million of the revenue came
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from Space Systems business whereas only
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29.4 million came from the launch
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business having said that as I mentioned
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earlier the launch business is the
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enabler for the Space Systems business
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they both work hand inand rocket lab
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would not be such a formidable company
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and end to-end space company if it
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didn't have one of the other it's very
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important to have both which is why
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Neutron promise is so important
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so that is it that is my favorite
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investment in space as I said I can't
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invest in SpaceX today and the next best
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option is rocket lab there is a near
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100x Arbitrage between spacex's
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valuation and Rocket lab's valuation
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while that Arbitrage is Justified in
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some ways given that SpaceX has
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developed far bigger rockets and already
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has starlink in operation I think rocket
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lab is also going in that same direction
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and I'm trying to get in early just
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waiting for it to play out I am
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extremely bullish on the future of space
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space was on pause for multiple decades
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only recently commercial space companies
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have started doing business and only in
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the last decade have some companies come
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public it is a great time to start
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buying it to these companies as there is
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a very long Runway ahead of them I
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really believe that while humans were
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born on Earth they're not meant to stay
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on Earth our place is in the stars and
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as humans start going and doing more
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deep space missions companies like
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rocket lab will become essential to the
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space economy this is an opportunity to
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get into an early multibagger which
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could become a 10x or even a 100x stock
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looking 30 years out rocket lab is a
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long-term hold for me and it is one of
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the largest investments in my account if
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you like this kind of financial content
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please like And subscribe you will see
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more videos in your feed more often
