Why Rocket Lab Stock Plummeted This Week
Shares of up-and-coming space company Rocket Lab (NASDAQ: RKLB) are down 10% this week as of 2 p.m. ET on Thursday, according to data provided by S&P Global Market Intelligence.
The culprit for this decline came Monday night, when Rocket Lab announced a new $750 million at-the-market equity offering.
Due to the shareholder dilution involved from the higher outstanding share count that comes alongside an equity offering, a drop in share price isn't unwarranted. However, it may not be bad for Rocket Lab and its shareholders over the long run.
Source Fool.com
