Rocket Lab Stock: Why It's Dropping And What Comes Next
Shares of Rocket Lab NASDAQ: RKLB have pulled back sharply over the past week, closing Monday, Jan. 26, nearly 20% below its recent all-time high. The sell-off came despite continued momentum across the aerospace and defense sector and a recent successful Electron mission.
For the last five years, the narrative between retail and institutional investors has been one of battle. Retail traders chased hype, while institutions stuck to the numbers.
Rocket Lab Corporation (RKLB) closed at $88.9 in the latest trading session, marking a +1.05% move from the prior day.
Rocket Lab ( NASDAQ:RKLB ) disclosed last night that qualification testing of the Stage 1 tank for its Neutron medium-lift rocket resulted in a rupture during a hydrostatic pressure trial.
Shares of Rocket Lab NASDAQ: RKLB received another major vote of confidence this month after financial heavyweight Morgan Stanley significantly upgraded both its rating and price target on the stock. On Jan. 16, 2026, the firm raised its rating from Equal Weight to Overweight and lifted its price target from $67 to a Street-high $105.
Rocket Lab (RKLB)'s stock surged 45%, in the past three months, driven not only by a robust 10% increase in revenue but also by a significant 36% uplift in valuation.
Rocket Lab (RKLB) nearly hit $100 on Friday after Morgan Stanley upgraded the space tech company. George Tsilis talks about the company's satellite business as a main catalyst to the positive price action even as some analysts sit on the sidelines.
Rocket Lab Corporation is positioned for ~$900M in revenue in 2026 as Defense and Space Systems backlog converts. Space Systems should drive sustained 30%+ growth via multi-year national security programs. Electron is expected to maintain 20+ launches annually, anchoring reliability and execution credibility.
“What more do you want?” asked KeyBanc analysts led by Michael Leshock in a late Wednesday note downgrading Rocket Lab shares to sector weight from overweight.
Rocket Lab (RKLB) has delivered over 550% returns since my November 2024 'Buy' rating initiation. The upcoming Neutron rocket launch in mid-2026 is a major catalyst, targeting the lucrative medium-lift constellation market with a reusable, cost-effective design. I think RKLB is nearing an EBITDA breakeven point as R&D spending on Neutron peaks and gross margins expand toward a non-GAAP target of 44%.
The latest trading day saw Rocket Lab Corporation (RKLB) settling at $86.58, representing a -1.5% change from its previous close.