Shares of Rocket Lab Corp. (NASDAQ:RKLB) are trading flat Wednesday morning, holding stable after a 10% weekly pullback as investors weigh high development costs against massive defense wins. Here’s what investors need to know.
- Rocket Lab stock is showing downward pressure. Where are RKLB shares going?
Upcoming Neutron Rocket Tapped for $397M Military Deployment
On Aug. 4, Rocket Lab won a $397 million U.S. Space Force contract to build, launch and operate threat-tracking “Flatellites” for the Space-Based Airborne Moving Target Indicator (SB-AMTI) program.
Marking Rocket Lab’s largest national security award of the year, the agreement utilizes its upcoming medium-lift Neutron rocket for orbital deployment.
Strong Q2 Earnings and Record Backlog Balanced Against Neutron Development Costs
The stock’s 10% weekly pullback contrasts with Rocket Lab’s strong second-quarter financial results reported on Aug. 10. For the quarter ended June 30, the company delivered a record $234 million in revenue, up 62% year-over-year and expanded its backlog to a record $2.36 billion.
Management guided for third-quarter revenue between $250 million and $265 million, supported by more than $437 million in new launch contracts secured across its Electron, HASTE and Neutron programs.
While national security execution remains a growth driver, underpinned by a $397 million Space Force contract award and inclusion in the defense sector’s NITE-STAR architecture, investors are weighing high operating expenses and ongoing capital expenditures as hardware integration and testing continue for the medium-lift Neutron rocket ahead of its planned debut.
RKLB Shares Pause Wednesday Morning
RKLB Price Action: Rocket Lab shares were trading at $66.79 at the time of publication on Wednesday, according to Benzinga Pro data.
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