Rocket Lab (NASDAQ:RKLB), an end-to-end space launch and spacecraft systems provider, closed at $55.25, down 6.64%. Shares fell after Rocket Lab pushed Neutron's first launch to 2027, and investors are watching development progress and launch timing. Trading volume reached 47.7M shares, coming in about 141% above its three-month average of 19.8M shares. Rocket Lab IPO'd in 2020 and has grown 467% since going public.
S&P 500 (SNPINDEX:^GSPC) closed at 7,744, up 0.33%, while the Nasdaq Composite (NASDAQINDEX:^IXIC) ended at 26,713, up 0.08%. Among aerospace and defense peers in space launch, spacecraft, and satellite systems, Redwire (NYSE:RDW) closed at $8.90, up 3.29%, and Intuitive Machines (NASDAQ:LUNR) closed at $11.57, up 4.99%.
Rocket Lab's medium-lift rocket Neutron has hit another delay today after the company said it found microscopic air voids in the propellant dome of its next-gen rocket. Originally, Neutron was supposed to hit the skies for the first time in 2024, but has been steadily pushed back by engineer and CEO Peter Beck's usual "better safe than sorry" stance toward new launches.
Following this series of delays, today's additional pushback almost felt inevitable. However, management believes it will have a solution in place by early 2027, allowing it to test the new tank then.
That said, I believe Neutron should eventually make its maiden voyage -- maybe in 2027 as management suggests, maybe later -- and if all goes well, a whole new world of larger payload opportunities could be unlocked for Rocket Lab and its customers.
I already picked up some RKLB stock earlier this month and will probably do so again later this month after the stock's further decline. Ultimately, I believe Rocket Lab's long-term investment thesis remains the same, but today is a bit of a bummer, especially with several Neutron launch contracts already in place.
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Josh Kohn-Lindquist has positions in Redwire and Rocket Lab. The Motley Fool has positions in and recommends Intuitive Machines and Rocket Lab. The Motley Fool has a disclosure policy.