Rocket Lab stock plunges 12% to lowest since April

Rocket Lab shares dropped more than 12% on July 16, reaching their lowest level since April 13. The fall reduced the company’s market value from about $86 billion to roughly $40 billion and left the stock down about 55% from its peak earlier this year.

The decline followed a broader pullback in space-related equities after the SpaceX IPO fell back to its offering price earlier this week and erased over $1 trillion in market value. Investors pared positions across the sector: Planet Labs traded down to about $22 from a year-to-date high near $51, Virgin Galactic fell to roughly $2.60 from about $9 in June, and the Procure Space ETF (UFO) slipped to $43 from a high near $68. The UFO ETF had climbed as much as 360% from its low earlier in 2024 before retreating.

Major brokerages continue to maintain positive ratings on Rocket Lab. Morgan Stanley lists an overweight rating, Citigroup an outperform rating. Bank of America raised its price target from $105 to $110, while Citizens and Roth have targets near $130, all well above the current trading level.

Company results show revenue of $200.3 million in the most recent quarter, a 63% increase from the same quarter a year earlier. Rocket Lab reported a backlog of about $2.2 billion, up 20%. The company reported order growth for its Electron, HASTE and Neutron launch vehicles and recorded five dedicated Neutron flights during the quarter.

Rocket Lab disclosed plans to acquire Iridium for roughly $8 billion. The company expects the purchase to add a global satellite communications network and recurring revenue tied to Iridium’s L-band spectrum. Management describes the deal as a step toward integrating satellite design, component manufacturing and launch services.

Analyst estimates compiled for the company show average revenue projections rising about 52% to $919 million for the current year and reaching roughly $1.28 billion in the following year.

Technical indicators show the share price has fallen from a record high near $151 to about $67. The price moved below the 50% Fibonacci retracement level and is approaching the 61.8% retracement. The stock has slipped under the 50-week moving average and the Relative Strength Index is below 50. Some technical analysts identify potential support zones near $60 and $50 before any price recovery tied to new financial results or company announcements.

The recent sell-off removed roughly half of Rocket Lab’s market value over several weeks while the company reports revenue growth, a rising backlog and an acquisition plan that would add satellite services to its business.