Why Rocket Lab Stock Slipped Last Month
Shares of Rocket Lab (NASDAQ: RKLB) slipped 33% last month, according to data from S&P Global Market Intelligence. The upstart space flight company trying to compete with SpaceX had another strong earnings report, but delayed the test launch for its new, larger rocket type called the Neutron, which caused investors to sell off shares.
Despite this drop, Rocket Lab shares are up 100% in the last twelve months. Here's why the stock fell in November, and whether it is finally a buy.
By developing a small rocket called the Electron, Rocket Lab was able to wiggle its way into the commercial rocket launch sector by attacking an area that SpaceX did not serve: small payloads. The Electron is now flying missions at a rate of 20 per year, with a backlog of over $500 million in contracted revenue.
Source Fool.com
