Rocket Lab (NASDAQ: RKLB) shares dropped 33% last month due to a delayed test launch of its Neutron rocket, causing investors to sell off. Despite this, shares are up 100% in the last year. Rocket Lab’s Electron rocket has a backlog of over $500 million in contracted revenue and is flying 20 missions annually. Space systems revenue is growing, with a 48% increase in revenue last quarter to $155 million. The Neutron rocket, set to compete with SpaceX, had test flights pushed back to 2026, contributing to the stock decline. Rocket Lab must scale up Neutron launches to manage cash burn and recoup development costs. The stock is currently overvalued.

Read more at Yahoo Finance: Why Rocket Lab Stock Slipped Last Month