Rocket Lab's stock fell 23% from Oct. 12 to Oct. 16, its worst weekly decline since going public five years ago. On Oct. 14 the company delayed the first launch of its larger Neutron rocket to 2027 because of a defect in its carbon-composite tank, after earlier targets of 2024, 2025 and 2026. The same week, Ligado Networks sent a letter to the FCC challenging Rocket Lab's planned $8 billion takeover of Iridium and urging closer scrutiny. Launch Services made up just 19% of revenue last quarter, yet the stock trades at 32 times this year's sales with a $30.5 billion market cap and is not expected to be profitable until 2028. The author suggests waiting for clearer progress on the Neutron launch and the Iridium deal before buying.
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Original headline: Rocket Lab Just Had the Worst Week in Its History . Here What Id Do With the Stock Now .
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- Rocket Lab Just Had the Worst Week in Its History . Here What Id Do With the Stock Now .
Rocket Lab's stock fell 23 per cent from October 12 to 16, its worst weekly decline since its public debut five years ago, after the company delayed the first Neutron launch to 2027 due to a carbon-composite tank defect. Ligado also wrote to the FCC challenging Rocket Lab's planned $8 billion takeover of Iridium. Launch services generated just 19 per cent of revenue in the latest quarter, while Space Systems accounted for 81 per cent, and backlog reached $2.36 billion, more than double projected 2026 revenue of $959 million. With a market cap of $30.5 billion, trading at 32 times this year's sales, and losses expected until 2028, the author says the stock remains expensive and recommends waiting for clearer Neutron progress and completion of the Iridium deal before buying.
- Rocket Lab Just Booked Its Biggest Contract Ever (Again)
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- Rocket Lab Just Had the Worst Week in Its History. Here's What I'd Do With the Stock Now.
Rocket Lab shares fell 23% from Oct. 12 to Oct. 16, their worst weekly drop since the company went public five years ago. Two setbacks drove the decline: the first Neutron launch was pushed from the end of 2026 to 2027 due to a defect in a carbon-composite tank, and Ligado Networks challenged the FCC over Rocket Lab's planned $8 billion takeover of Iridium. Launch Services generated 19% of revenue in the latest quarter, while Space Systems accounted for 81%. Backlog reached $2.36 billion at the end of the second quarter, more than double the projected $959 million in 2026 revenue, and analysts expect revenue of $1.33 billion in 2027 and $1.74 billion in 2028. With a $30.5 billion market cap, the stock trades at 32 times sales and is expected to stay unprofitable until 2028; the author suggests waiting for clearer Neutron progress and the closing of the Iridium deal before buying.
- Rocket Lab Just Had Another Setback. Here’s Why I’m Finally Buying the Stock Anyway
Rocket Lab delayed its Neutron rocket for the second time this year after a manufacturing flaw was found in a carbon composite tank dome in the first stage, sending the stock sharply lower to about two-thirds below its May all-time high. The first Neutron launch is now expected in 2027, instead of the fourth quarter of 2026. Q2 revenue reached $234 million, up 62% year over year, and backlog stood at $2.36 billion, while the company agreed to acquire Iridium Communications for about $8 billion including debt. The author says the stock is still not cheap at about 40 times sales and remains loss-making, but he is starting a small position and will add as milestones are reached.
- History Says to Buy These Space Stocks in a Market Crash
The article notes the S&P 500 is up roughly 12% in 2026 despite risks from persistent inflation, high bond yields and elevated valuations. It argues two space stocks could be attractive if the market suffers a major pullback. SpaceX (SPCX), with a market capitalization of roughly $1.92 trillion, trades at about 43 times expected sales; analysts expect revenue to grow roughly 141% to about $45 billion this year, though the company is currently operating at a loss. Rocket Lab grew second-quarter revenue roughly 62% to about $234 million, with a market capitalization of roughly $30.4 billion and a valuation of about 32 times expected sales, and it is still posting net losses.
- History Says to Buy These Space Stocks in a Market Crash
The S&P 500 is up roughly 12% in 2026 and the Nasdaq Composite roughly 12.5%, after gaining 71% and 74% over the last half-decade. The author cites risks including persistent inflation, high bond yields, elevated valuations and AI financing concerns, and suggests a sharp market pullback could create a chance to buy space stocks. SpaceX (SPCX), with a market capitalization of roughly $1.92 trillion, trades at about 43 times this year's expected sales of roughly $45 billion, and it is currently operating at a loss with capital spending likely to keep surging. Rocket Lab grew revenue about 62% year over year in the second quarter to roughly $234 million, with a market cap near $30.4 billion, about 32 times expected sales, and still posts sizable net losses.
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