Rocket Lab Stock Pops, Then Drops, as Launches Speed Up

A Rocket Lab Electron rocket lifts off from Mahia, on the east coast of New Zealand’s North Island. (MArTY MELVILLE/AFP via Getty Images)

Key Points

• Rocket Lab’s stock rose following the company’s second launch within 48 hours, only to fall as the market turned lower.
• Thursday‘s launch followed one on Tuesday. The Tuesday launch was the 17th in 2025, surpassing the 2024 record of 16 launches.
• Rocket Lab’s market value reached approximately $23 billion, trading at 26 times its estimated 2026 sales of $880 million.

Rocket Lab stock continued its trip into orbit early Thursday, only to quickly come back to Earth. Another launch helped, but it wasn’t enough to offset the damage from a sliding stock market.

Shares of the space launch and technology provider traded as high as $46.26 before closing at $39.48, down 9.5%.

The S&P 500 and Dow Jones Industrial Average were up early, too, buoyed by Nvidia’s strong earnings report, but closed down 1.6% and 0.8%, respectively. Nvidia shares traded as high as $196, but closed at $180.64, down 3.2%.

The reason for the early gain wasn’t hard to identify. Rocket Lab launched its “Follow My Speed” mission for a confidential commercial customer.

While a launch in itself shouldn’t necessarily boost the stock—launching rockets is what Rocket Lab does—this one was special because it came just 48 hours after another Rocket Lab launch. Increasing the pace of launches represents another milestone for the space start-up.

Faster launches mean more revenue. The consensus call on Wall Street is for 2026 sales of about $880 million, according to FactSet, up from the $600 million expected in 2025.

Thursday’s cargo was carried on Rocket Lab’s Electron rocket, which can carry 300 kilograms to space. But Rocket Lab is developing its Neutron rocket, which can carry 15,000 kilograms to low Earth orbit. Larger rockets also help revenue.

The prior launch, on Tuesday, was Rocket Lab’s 75th launch overall and the 17th of 2025, breaking the annual record. Rocket Lab launched 16 rockets in 2024.

That impressive performance is reflected in the stock price. Coming into Thursday trading, Rocket Lab stock was up 71% this year and 116% over the past 12 months.

Gains like that can lead to larger-than-average losses on big down days in the market.

Still, investors have been encouraged by growing commercial opportunities for space launch. Many companies are racing to put communications and other satellites into orbit, so having one of the most reliable launch vehicles in the world is a good thing.

Rocket Lab’s Electron rocket is the second-most heavily used rocket in the Western Hemisphere. Elon Musk’s SpaceX still dominates. Its Falcon 9 has flown more than 140 times so far in 2025.

The optimism has pushed Rocket Lab’s market value to about $23 billion, or 26 times estimated 2026 sales.

Write to Al Root at allen.root@dowjones.com