From StockStory: 2025-04-18 05:16:00

Rocket Lab’s stock price has surged by 83.2% to $19.80 per share in the past six months, driven by strong quarterly results. However, three key reasons make us cautious about investing in Rocket Lab. Firstly, its EPS has declined by 31.2% over the last two years. Secondly, the company’s free cash flow margin averaged negative 57.3%, indicating significant cash burn. Lastly, Rocket Lab’s short cash runway and high debt levels raise concerns about potential dilution. Until the company shows consistent free cash flow, we prefer to avoid investing in Rocket Lab. Instead, consider exploring semiconductor stocks for better opportunities.

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Read more at StockStory: 3 Reasons to Avoid RKLB and 1 Stock to Buy Instead