Rocket Lab Stock Has Crashed 40%: Should You Buy the Stock Right Now?

Brett Schafer, The Motley Fool

Sun, Mar 23, 2025, 3:46 PM 5 min read

Rocket Lab USA (NASDAQ: RKLB) banal went connected an unthinkable tally successful the past 12 months. Some whitethorn accidental it adjacent went to the moon. Shares went from astir $4 successful the outpouring of 2024 to breaching $30 successful January of this year, a much than 7x summation successful little than a year. Investors went from pessimistic to optimistic connected this upstart rival to SpaceX arsenic it launches much rockets and builds connected its capabilities arsenic an end-to-end abstraction system platform.

Now, investors person turned pessimistic again. Some analysts estimation that the company's highly anticipated Neutron rocket volition not beryllium acceptable successful 2025 arsenic absorption presently claims, which is apt wherefore Rocket Lab's banal has fallen truthful overmuch successful conscionable the past fewer weeks. With stock prices present down 40% from caller highs, does that marque Rocket Lab banal a bargain close now?

Like SpaceX a decennary ago, it's astir a occurrence that Rocket Lab is simply a viable business. Building a backstage abstraction formation institution is incredibly difficult. Launching a rocket into abstraction is simply a analyzable pursuit, and if your rockets spell done catastrophic nonaccomplishment and stroke up a customer's products adjacent once, you hazard ruining your marque reputation.

All this to say, Rocket Lab is present the 2nd backstage institution successful North America to reliably motorboat rockets for commercialized and authorities contractors. It attacked the marketplace by focusing connected tiny payloads with its Electron rocket, a niche that SpaceX does not serve. In 2024, the Electron rocket launched 16 times with a 100% ngo occurrence rate. In 2025, Rocket Lab hopes the Electron task gets adjacent much missions.

To further its offering for customers, Rocket Lab has rapidly developed a Space Systems conception that helps physique the products launched connected its Electron missions for customers (as good arsenic 3rd parties specified arsenic SpaceX). Space Systems gross was $311 cardinal successful 2024, up from $172.7 cardinal successful 2023. Combined, the 2 segments generated $436 cardinal successful gross past year, up from little than $100 cardinal conscionable a fewer years ago. Rocket Lab is 1 of the fastest-growing companies successful nationalist markets today.

Rocket Lab's maturation has been thing abbreviated of phenomenal. However, bulls connected the banal volition archer you that this maturation enactment is conscionable getting started. In 2025, absorption says it volition debut and trial formation its caller Neutron rocket, which is importantly larger than the Electron. Larger payloads mean a much analyzable launching strategy but should let the institution to make overmuch much gross per launch. Reports are that Rocket Lab volition complaint customers astatine slightest $50 cardinal per Neutron motorboat compared to nether $10 cardinal for the Electron.