Why Are Rocket Lab Shares Sliding On Friday?

by | Feb 20, 2026 | General

Rocket Lab Corp (NASDAQ:RKLB) shares fell on Friday, extending a rough stretch for space-related equities.

SpaceX IPO Chatter Pulls Liquidity

Speculation around a potential $1.5 trillion SpaceX IPO has drawn capital away from rivals, pressuring peers like Rocket Lab. The sector-wide repositioning has coincided with broad declines across launch and satellite names throughout early 2026.

Congress Funding Cut Adds Company-Specific Pressure

A separate headwind: Congress withheld funding for a planned 2031 Mars sample-return mission, an overhang that has pushed investors to recalibrate Rocket Lab’s longer-term opportunity set.

However, Rocket Lab’s Cassowary Vex mission — targeting liftoff no earlier than late February — marks its fourth hypersonic test in under six months using the HASTE rocket for the Defense Innovation Unit, aimed at lowering costs and increasing test cadence up to Mach 20.

Technical Analysis

Rocket Lab is trading 6.2% below its 20-day simple moving average (SMA), and 11.5% above its 100-day SMA, a setup that suggests short-term weakness inside a still-intact longer-term uptrend. Shares are up 185.59% over the past 12 months, and the stock is positioned closer to its 52-week highs than lows.

  • Key Resistance: $80.00
  • Key Support: $67.00

Earnings & Analyst Outlook

Rocket Lab is set to report earnings 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)
  • Valuation: P/E ratio not provided (profitability-based P/E may be less informative while EPS is negative)

Analyst Consensus & Recent Actions: The stock carries a Buy Rating with an average price target of $49.19. 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 Price Action: Rocket Lab shares were down 6.06% at $71.94 at the time of publication on Friday, according to Benzinga Pro data.

Image via Shutterstock