Rocket Lab Crash-Lands 11% Post Earnings, Board The Stock Before It Breaks $30

2025-05-12 10:07:21 ET

Summary

• Rocket Lab USA, Inc. stock crashed 11% post earnings on Friday due to softer guidance, making for a superb buy opportunity into this growth stock.
• Investors are missing the big picture and what Neutron will bring in 2H25, so what we're seeing is just panic selling.
• The Neutron rocket, cheaper and reusable, is a game-changer, competing with SpaceX's Falcon9 and securing major government contracts already.
• Rocket Lab is growing much faster than SpaceX, with launches up 60% between 2023 and 2024.
• The Neutron should enable RKLB to take share and stick a higher ASP per launch, which will expand margins. All signs point to growth.

We’re adding Rocket Lab USA, Inc. ( RKLB ) to our coverage because the 11% post-earnings crash on Friday is too attractive to ignore. Last Thursday, Rocket Lab reported their Q1 results , with a loss of $30M on sales of $123M coming in-line and ahead of expectations, but the guide for Q2 outlook was softer than expected. Management is guiding for Q2 sales between $130M to $140M with the midpoint trailing consensus and a loss of $28M-$30M wider than the expected $21M. This sent the stock down by over 11% on Friday (which it’s already starting to recover from in pre-market trading up 4%). Investors are spooked by the outlook, but shouldn’t be; all signs point to Rocket Lab having a lot more working for it than against, and a selloff is a window to add this growth stock....

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