Rocket Lab Stock Has Lost About 70% From Its Record. Is It Finally a Buy?
Thursday's drop sent the space stock even lower. Is it cheap enough to buy before Monday's report?
Rocket Lab's stock has plummeted 70% since its May 27 record high of $150.23, now trading around $46 as of writing. Despite the steep decline, the company reports strong revenue growth, with third-quarter earnings expected to surpass $250 million, up 61-71% from the prior quarter. Rocket Lab's backlog of signed contracts exceeds $2.36 billion, more than double the same period last year.
The company has set a revenue record for each quarter of 2026 and aims to cut its adjusted EBITDA loss, which narrowed to $8.8 million in the second quarter, down from $27.6 million a year earlier. However, Neutron, Rocket Lab's reusable medium-lift rocket, still lacks a launch date. The stock's current valuation, around 30 times sales, is seen as more reasonable than its recent peak, but remains uncertain due to the pending third-quarter earnings report and Neutron's development timeline. Investors are advised to wait for the forthcoming report to assess the stock's potential.
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