Rocket Lab USA's (RKLB 1.80%) quarterly financials matched Wall Street expectations, but the company's guidance failed to quell the worries surrounding the stock.
After soaring higher in 2024, shares of Rocket Lab USA (RKLB -3.75%) haven't enjoyed the same upward trajectory so far in 2025. For those who have hopped aboard for a ride with the space stock, this year's poor performance -- a 26% plunge -- is surely disconcerting as the S&P 500 index has remained about flat.
Rocket Lab USA Inc. NASDAQ: RKLB has recently experienced a sharp drop from its 52-week highs, leaving current investors wondering whether this selloff presents a buying opportunity or signals more downside ahead. After a year of massive triple-digit gains, the stock's sudden reversal has sparked speculation about what comes next for this space industry contender.
Rocket Lab's Q4 results showed a revenue increase to $132.4 million, but Q1 guidance disappointed investors, leading to a stock price drop. Despite a stretched valuation, Rocket Lab's stock is now more attractive, trading below 12x 2026 sales, presenting a better entry point. The Neutron launch is delayed to the second half of 2025, with significant work remaining, posing risks to the timeline.
In this video, I will be talking about Rocket Lab (RKLB 3.33%) and why I'm buying the recent pullback. Watch the short video to learn more, consider subscribing, and click the special offer link below.
Rocket Lab is a standout in the space race, with record revenue growth, a $1B backlog, and a 100% launch success rate. Its focus is on innovation and government contracts. Despite its potential, RKLB faces risks like market volatility, reliance on government budgets, and competition. Its stock is highly volatile, making it unsuitable for conservative investors. I maintain a Buy rating for RKLB due to its disruptive potential, but caution is advised. For those comfortable with risk, it offers significant upside as the space industry expands.
Rocket Lab is poised for significant growth with 20+ launches in 2025, including the highly anticipated Neutron rocket, a cost-effective Falcon 9 competitor. Despite a 35% stock retracement, Street analysts maintain a buy rating with a $25.50 price target. The author anticipates a potential $40 stock price by year-end 2025. The Bleecker Street short report's claims are debunked; Rocket Lab's execution and demand for Neutron remain strong, with multiple contracts already secured.
Rocket Lab (RKLB 2.37%) stock got thrown for a loop Friday morning, first crashing more than 18% in response to a disappointing earnings report, then recovering as investors took time to digest the news. As of 11:30 a.m.
Rocket Lab shares tumbled in the wake of the company's fourth-quarter results Thursday, weighed down by weak outlook, although analyst firm KeyBanc Capital Markets believes the company's long-term growth prospects are still strong.
Space launch provider Rocket Lab USA (RKLB -6.68%) reported mixed fourth-quarter earnings on Thursday, Feb. 27. Revenue in Q4 was notably higher at $132.4 million, topping analysts' consensus projections of $130 million and rising 121% year over year.
The commercial space company reported solid fourth-quarter numbers.
Rocket Lab USA, Inc. (NASDAQ:RKLB ) Q4 2024 Earnings Conference Call February 27, 2025 5:00 PM ET Company Participants Murielle Baker - Senior Communications Manager Peter Beck - Founder and CEO Adam Spice - CFO Conference Call Participants Edison Yu - Deutsche Bank Andres Sheppard - Cantor Fitzgerald Suji Desilva - ROTH Capital Trevor Walsh - Citizens JMP Michael Leshock - KeyBanc Capital Markets Jason Gursky - Citi Erik Rasmussen - Stifel Andre Madrid - BTIG Operator Good evening and thank you for standing by. My name is Kelvin and I'll be your conference operator today.