From Yahoo Finance: 2025-03-23 18:46:00

Rocket Lab USA (NASDAQ: RKLB) stock soared from $4 to over $30 in less than a year, competing with SpaceX. However, concerns about the delayed Neutron rocket have caused a 40% stock drop. Despite strong past performance, uncertainty looms over Rocket Lab’s future growth and profitability.

Rocket Lab is the second private rocket company in North America, focusing on small payloads with its successful Electron rocket. The company generated $436 million in revenue in 2024, with hopes for more Electron missions in 2025. The Space Systems segment supports customer products and has seen rapid revenue growth.

The highly anticipated Neutron rocket launch in 2025 could significantly increase Rocket Lab’s revenue with larger payloads. However, analysts predict delays until 2026 or 2027, leading to potential cash burn and stock price decline. The company is at a pivotal point with the Neutron’s success uncertain.

Investors are advised to be cautious with Rocket Lab stock due to the potential downside of a delayed Neutron launch. Despite past growth, the current stock price assumes Neutron’s success, which is not guaranteed. With significant development costs and uncertainty, it might be wise to monitor Rocket Lab’s progress rather than buy now.

Read more: Should You Buy the Stock Right Now?