Why Rocket Lab Stock Just Crashed
High-flying Rocket Lab (NASDAQ: RKLB) stock tumbled down (almost) to Earth Tuesday after Bleecker Street Research -- which publishes "public short ideas" for its parent company, stock-shorting firm Bleecker Street Capital -- warned that Rocket Lab's highly anticipated Neutron medium-lift vehicle won't launch for "a long, long time." As of 1:15 p.m. ET, Rocket Lab stock is down 9%.
Bleecker Street starts off its short report by naming the catalyst that's primarily responsible for Rocket Lab's 485% surge in stock market value over the last year. It says, "[I]nvestor and analyst excitement over the upcoming launch of Neutron, a medium-lift rocket that RKLB hopes will compete with SpaceX's Falcon 9."
Rocket Lab has been targeting a mid-2025 first launch for Neutron, with the analysts on NextSpaceflight.com specifically penciling in a July target. But according to Bleecker, Rocket Lab "has materially misled investors about the likelihood" that its rocket will fly then.
Source Fool.com
