Why Rocket Lab (RKLB) Stock Is Down Today Despite A Successful Electron Launch

Rocket Lab Corp (NASDAQ:RKLB) shares are down on Monday as investors weigh mixed news from a successful recent launch and an issue during testing of its upcoming Neutron rocket. Here’s what investors need to know.

Rocket Lab Balances Successful Electron Launch With Neutron Testing Setback

Rocket Lab’s latest Electron mission, “The Cosmos Will See You Now,” last week successfully delivered two satellites to orbit for European space tech firm Open Cosmos, highlighting continued execution on its small-launch business.

Despite the successful mission, focus has shifted to Neutron, Rocket Lab’s upcoming medium-lift rocket, after a Stage 1 tank ruptured during a hydrostatic pressure qualification test in Long Beach, California, on Jan. 21.

The company said the tank was pushed beyond expected flight loads and noted that such test failures are a normal step in validating structural margins and improving the design.

No Major Damage, Development Work Continues

Rocket Lab reported no significant damage to surrounding structures or facilities, and a replacement Stage 1 tank is already in production. This allows the broader Neutron development program to continue while engineers analyze test data and assess any potential impact on the launch schedule.

Management plans to give investors a more detailed update on Neutron’s timeline during its 2025 fourth-quarter earnings call in February.

Is Mixed Momentum A Buy Signal?

The stock is currently trading 3% below its 20-day simple moving average (SMA) but is 34.5% above its 100-day SMA, demonstrating longer-term strength. Over the past 12 months, shares have surged 173.09% and are currently positioned closer to their 52-week highs than lows.

The RSI is at 63.64, which is considered neutral territory, while MACD is below its signal line, indicating bearish pressure on the stock. The combination of neutral RSI and bearish MACD suggests mixed momentum.

• Key Support: $67

Rocket Lab’s Business Model

Rocket Lab Corp is engaged in space, building rockets and spacecraft. It provides end-to-end mission services that offer frequent and reliable access to space for civil, defense and commercial markets.

The company designs and manufactures the Electron and Neutron launch vehicles and the Photon satellite platform. Rocket Lab’s Electron launch vehicle has delivered multiple satellites to orbit for various organizations, enabling operations in national security, scientific research and communications.

Earnings Estimates Show Positive Momentum Ahead

Investors are looking ahead to the next earnings report on Feb. 26.

• EPS Estimate: Loss of nine cents (Up from Loss of 10 cents year-over-year)
• Revenue Estimate: $178.07 million (Up from $132.39 million YoY)

Analyst Consensus & Recent Actions: The stock carries a Buy Rating with an average price target of $64. Recent analyst moves include:

• Goldman Sachs: Neutral (Raises target to $69 on Jan. 20)
• B of A Securities: Buy (Raises target to $120 on Jan. 20)
• Morgan Stanley: Upgraded to Overweight (Raises target to $105 on Jan. 16)

Benzinga Edge Rankings

Below is the Benzinga Edge scorecard for Rocket Lab, highlighting its strengths and weaknesses compared to the broader market:

–Momentum: Strong (Score: 96.98) — Stock is outperforming the broader market.

The Verdict: Rocket Lab’s Benzinga Edge signal reveals a strong momentum score, indicating that the stock is currently outperforming the market. Investors should keep an eye on upcoming earnings as the company continues to navigate its growth trajectory.

Top ETF Exposure

• SPDR S&P Aerospace & Defense ETF (NYSE:XAR): 5.66% Weight
• ARK Autonomous Technology & Robotics ETF (BATS:ARKQ): 4.30% Weight
• First Trust Indxx Aerospace & Defense ETF (NYSE:MISL): 4.81% Weight

Significance: Because RocketLab carries significant weight in these funds, any significant inflows or outflows for these ETFs will likely force automatic buying or selling of the stock.

RKLB Shares Slide Monday Afternoon

RKLB Price Action: Rocket Lab shares closed Monday down 9.51% at $80.45, according to Benzinga Pro data.

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