All investors want to find that “rocket ship” stock before it launches into the stratosphere. Yet the risks are real, and many early-stage companies end up as another falling star. So which space stock is a better buy-and-hold for the next decade? The end-to-end space company Rocket Lab(NASDAQ: RKLB) or the Jetsons-like air taxi company Joby Aviation(NYSE: JOBY)?
These two innovative aerospace companies are fundamentally different in their missions and current stages, but both offer significant upside along with serious risks.
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Rocket Lab is turning heads as it secures its spot as a top competitor to Elon Musk’s SpaceX. Rocket Lab’s focus is more on small and medium-lift launches, and the company actually ranks second in flights to space after SpaceX.
Furthermore, Rocket Lab’s Neutron rocket is set to launch in the fourth quarter of 2026. The inaugural launch was recently delayed due to the failure of a propellant tank. If Rocket Lab successfully launches its Neutron rocket, it will mark a significant milestone, making it a formidable opponent to SpaceX’s Falcon 9.
Image source: Getty Images.
Rocket Lab has handsomely rewarded investors over the past 12 months, with the stock skyrocketing nearly 300%. Interest in the space industry, lucrative defense contracts, and manufacturing satellites and their components have all boosted Rocket Lab’s shares.
Rocket Lab posted record annual revenue of $602 million in 2025. That revenue represents 38% year-over-year growth. The vertically integrated space company also grew its backlog to $1.85 billion, a 73% increase.
The space company still reported a net loss of $198 million in 2025. Rocket Lab does, however, still have a solid liquid position with more than $1 billion in cash and marketable securities on its balance sheet as of Dec. 31, 2025.
Joby is preparing for its first commercial flights in 2026. The inventive aviation start-up isn’t quite as far along in its operations as Rocket Lab, but its fourth-quarter earnings release and call showed that Joby’s offerings are in high demand.
Joby wrote in its fourth-quarter shareholder letter that due to unprecedented global support for advanced air mobility, the company plans to double manufacturing capacity from two to four aircraft per month in 2027.
To support future demand and growth, Joby signed an agreement to acquire a manufacturing facility in Ohio. The space is already fit for immediate use. Ultimately, Joby’s success hinges upon its FAA type certification. The process is complex and comprehensive, but the company is progressing. It’s on track to have final certification sometime in 2026.
Aviation is a notoriously expensive industry, and Joby’s financials reflect that reality. Through 2025, Joby’s total operating expenses reached $773 million. This budget boost was a substantial increase from its 2024 total of $597 million. Its net loss for 2025 was nearly $930 million.
Fortunately, the company also has a massive liquid position of $1.4 billion in cash, equivalents, and marketable securities. Joby brought in $53.4 million of revenue in 2025 and anticipates that number doubling to $105 million to $115 million in 2026. Despite the company’s high overhead, profitability still looks years away.
Both Rocket Lab and Joby Aviation are promising in their respective aerospace channels. While both companies are high-risk, high-reward in profile, right now Joby has far more risk, as its success hinges on FAA approval. Rocket Lab is already launching frequently, and its future isn’t solely dependent upon the Neutron rocket.
For a $2,000 investment and a decade-long time horizon, Rocket Lab looks to be the stronger buy today. It already has real and substantial revenue, a large backlog, and a clear roadmap. Joby could also eventually be great, but it’s likely going to ask investors to withstand years of heavy cash burn and regulatory uncertainty before that happens. Rocket Lab is further along and ready to take off.
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Catie Hogan has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Rocket Lab. The Motley Fool has a disclosure policy.
