Rocket Lab stock down 56% from May high

Rocket Lab shares have fallen about 56% from a May peak of $150 to roughly $65, even as the company reported revenue growth and announced new contracts and products.

The company reported second-quarter revenue of $234 million, a 62% increase year over year, and said backlog rose to more than $2.36 billion. Management projected third-quarter revenue between $250 million and $265 million and forecast gross margins of 29% to 31%.

Analysts’ consensus forecasts expect annual revenue near $958 million for the current year, a 59% increase, and about $1.36 billion next year, a projected 42% rise.

Rocket Lab disclosed recent contracts with the U.S. Space Force, Viasat and MDA. It also introduced a new generation of solar cells called Inverted Metamorphic (IMM) Apex. Company president Brad Clevenger described IMM Apex as a high-efficiency, lightweight, germanium-free product that combines proven reliability with faster production times.

The company announced an agreement to acquire satellite operator Iridium for about $8 billion. Company officials stated the deal will give Rocket Lab access to L-band spectrum, which they said may support additional services and expand addressable markets for the business.

Several brokerages set price targets above the current level. Berenberg initiated coverage with a buy rating and an $83 target. Bank of America analyst Ronald Epstein set a $110 target, and Citizens analyst Trevor Walsh set a $130 target. Other firms, including Cantor Fitzgerald, Citigroup and Craig Hallum, have published positive coverage.

On the charts, the stock traded around $65.87 and has moved below a Murrey Math Lines pivot at $75 and below the 50-day and 100-day moving averages. The Relative Strength Index has risen to about 40, its highest reading since August 24. Technical analysts note a developing double-bottom pattern with a neckline near $86.60; a move above that level would point to a next target near $100, according to technical analysis.

Company executives cited growing demand for launch and space-systems services, an expanding backlog and new product development when discussing the results and outlook.