Rocket Lab Corp (NASDAQ:RKLB) shares are sliding on Thursday as investors continue to react to Congress’s decision to decline funding for a planned 2031 Mars sample-return mission tied to NASA’s Perseverance rover.
This recent news, along with reports surrounding SpaceX’s potential IPO, is contributing to the stock’s volatility, adding pressure as broader markets edged lower Thursday. Here’s what investors need to know.
- Rocket Lab stock is feeling bearish pressure. Why is RKLB stock falling?
Rocket Lab Misses Out On Multibillion-Dollar Mars Sample Return Opportunity
The decision effectively ends Rocket Lab’s chance to secure a multibillion-dollar contract for ferrying Martian rock, soil and gas samples back to Earth. The company had proposed a roughly $4 billion concept for the mission, which would have significantly bolstered its long-term growth narrative.
Rocket Lab is already involved in Mars work, including building spacecraft for NASA and UC Berkeley’s ESCAPADE mission, but losing the Perseverance sample-return project diminishes its potential for high-margin deep-space missions.
The company recently completed its 81st Electron mission, which underscores strong customer demand for its launch services, but the loss of this contract is a setback for its growth trajectory.
Rocket Lab’s decline comes as the overall market faces pressure, indicating that the stock is moving in line with broader market trends, with the S&P 500 down 1.35% and the Nasdaq-100 slipping 1.61%.
SpaceX IPO Chatter Triggers Rotation Out Of Public Space Stocks
Renewed chatter about a potential SpaceX IPO, with estimates suggesting a valuation that could top $1.5 trillion, is pressuring the broader space-stock cohort as investors reshuffle portfolios ahead of a possible listing.
Instead of adding risk in existing public names, many traders are potentially taking a wait-and-see approach, locking in profits from 2025’s big run in space stocks and holding cash for a future SpaceX deal.
That rotation has contributed to double-digit pullbacks in several launch and satellite names over the past month, adding another headwind for Rocket Lab shares.
Rocket Lab Technicals Show Mixed Momentum After Strong Yearly Rally
Rocket Lab is currently trading 20% below its 20-day simple moving average (SMA) and 1.8% below its 50-day SMA, while it stands 9.3% above its 100-day SMA and 39.6% above its 200-day SMA. Shares have increased 138.50% over the past 12 months and are currently positioned closer to their 52-week highs than lows.
The RSI is at 44.12, which is considered neutral territory, indicating that the stock is neither overbought nor oversold. Meanwhile, MACD is below its signal line, indicating bearish pressure on the stock.
The combination of neutral RSI and bearish MACD suggests mixed momentum.
- Key Resistance: $80.00
- Key Support: $67.00
Rocket Lab’s Business Model
Rocket Lab 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 Photon satellite platform.
This company matters significantly in the current context as it has been a key player in the space sector, providing launch services to various organizations.
Rocket Lab Earnings Preview
Investors are looking ahead to the next earnings report on Feb. 26.
- EPS Estimate: Loss of 9 cents (Up from Loss of 10 cents YoY)
- 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 $64.00. Recent analyst moves include:
- Goldman Sachs: Neutral (Raises Target to $69.00) (Jan. 20)
- B of A Securities: Buy (Raises Target to $120.00) (Jan. 20)
- Morgan Stanley: Upgraded to Overweight (Raises Target to $105.00) (Jan. 16)
RKLB Shares Slide Thursday Afternoon
RKLB Price Action: Rocket Lab shares were down 6.58% at $68.34 at the time of publication on Thursday, according to Benzinga Pro data.
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