Rocket Lab Stock Has Crashed 40%: Should You Buy the Stock Right Now?
Rocket Lab USA (NASDAQ: RKLB) stock went on an incredible run in the last 12 months. Some may say it even went to the moon. Shares went from around $4 in the spring of 2024 to breaching $30 in January of this year, a more than 7x gain in less than a year. Investors went from pessimistic to optimistic on this upstart competitor to SpaceX as it launches more rockets and builds on its capabilities as an end-to-end space economy platform.Now, investors have turned pessimistic again. Some analysts estimate that the company's highly anticipated Neutron rocket will not be ready in 2025 as management currently claims, which is likely why Rocket Lab's stock has fallen so much in just the last few weeks. With share prices now down 40% from recent highs, does that make Rocket Lab stock a buy right now?Like SpaceX a decade ago, it's almost a miracle that Rocket Lab is a viable business. Building a private space flight company is incredibly difficult. Launching a rocket into space is a complicated pursuit, and if your rockets go through catastrophic failure and blow up a customer's products even once, you risk ruining your brand reputation.Continue reading
Rocket Lab USA (NASDAQ: RKLB) stock went on an incredible run in the last 12 months. Some may say it even went to the moon. Shares went from around $4 in the spring of 2024 to breaching $30 in January of this year, a more than 7x gain in less than a year. Investors went from pessimistic to optimistic on this upstart competitor to SpaceX as it launches more rockets and builds on its capabilities as an end-to-end space economy platform.
Now, investors have turned pessimistic again. Some analysts estimate that the company's highly anticipated Neutron rocket will not be ready in 2025 as management currently claims, which is likely why Rocket Lab's stock has fallen so much in just the last few weeks. With share prices now down 40% from recent highs, does that make Rocket Lab stock a buy right now?
Like SpaceX a decade ago, it's almost a miracle that Rocket Lab is a viable business. Building a private space flight company is incredibly difficult. Launching a rocket into space is a complicated pursuit, and if your rockets go through catastrophic failure and blow up a customer's products even once, you risk ruining your brand reputation.
