Why Rocket Lab’s Recent Fall Is Overblown
While the precipitous fall of CoreWeave‘s stock hogged many headlines this past week, it was an equally rough ride for Rocket Lab (NASDAQ: RKLB) and its investors. Shares of the end-to-end space company fell more than 25% as of Oct. 16. A delay in the company’s Neutron rocket launch, combined with Space Exploration Technologies‘ (NASDAQ: SPCX) momentum, led to the poor performance.
The Neutron rocket is a crucial part of Rocket Lab’s plan to move into medium-lift launches and compete with SpaceX for market share. Unfortunately, engineers discovered a small manufacturing defect, which led the company to push back the launch to 2027. This is not the first time the launch has been delayed, and investors are losing their patience.
Sure, SpaceX is a well-funded powerhouse, and the Neutron delay isn’t great, but the 25% drop seems largely overblown. Rocket Lab still has a backlog of more than $2.3 billion, and approximately 45% of that will be converted into revenue in the next year.
Source: www.fool.com — article syndicated from the publisher’s feed; all rights remain with the original publisher.