Rocket Lab’s Stock Stumbles Despite Strong Quarterly Performance

A record-breaking quarter, overflowing order books, and a successful NASA mission were not enough to prevent a sharp decline in Rocket Lab USA's share price. The catalyst for the sell-off was a significant announcement: the inaugural launch of the company's eagerly anticipated Neutron rocket has been postponed. Originally slated for late 2025, the debut is now scheduled for the first quarter of 2026. This delay prompted a wave of investor caution, raising the question of whether the market's negative reaction is justified or if it is overlooking the company's broader, positive trajectory.

The company's third-quarter financial results painted a picture of robust health. Rocket Lab posted revenues of $155.1 million, a figure that substantially exceeded forecasts and represented a 48 percent year-over-year increase. Furthermore, the net loss narrowed significantly to just $0.03 per share, a marked improvement from the $0.10 per share loss reported in the same period last year. The outlook for the final quarter was equally promising, with the company projecting sales between $170 million and $180 million.

The operational performance of its workhorse Electron rocket remains strong. In the third quarter alone, Rocket Lab secured 17 new launch contracts, bringing its backlog to a total of 49 planned missions. The cumulative value of all contracts has now surpassed the $1 billion mark. Complementing this launch business, the Space Systems division, which manufactures satellite components, is expanding rapidly and contributed $114.2 million in revenue during the quarter.

Initially, the market responded with enthusiasm, pushing the stock higher in after-hours trading. This optimism was short-lived.

The Neutron Delay and Its Market Impact

On Thursday, November 13th, Rocket Lab disclosed the schedule change for the Neutron rocket's first flight. The company officially attributed the delay to the need for additional testing to guarantee the vehicle's reliability. For the investment community, however, the news represents a notable setback. The Neutron platform is widely viewed as the cornerstone of Rocket Lab's next major growth phase.

Should investors sell immediately? Or is it worth buying Rocket Lab USA?

Designed as a medium-lift, reusable launch vehicle, Neutron is a substantial step up from the smaller Electron rocket. It is intended to enable the company to transport larger satellite constellations and secure lucrative government contracts, positioning it to compete directly with established industry leaders like SpaceX. The postponement pushes this strategic leap further into the future. The market's response was swift and severe: shares plummeted 9.45 percent on Thursday and continued their descent into Friday.

Even a triumphant NASA mission failed to lift the prevailing sentiment. On November 14th, an Electron rocket successfully deployed two Rocket Lab-built spacecraft on a journey to Mars—a significant technical achievement that was largely eclipsed by the disappointment surrounding the Neutron delay.

Divergent Views from Financial Experts

Analysts and financial institutions have offered mixed reactions. Some firms, including Needham and KeyBanc, raised their price targets for the stock, pointing to the company's strong core operations and growing order backlog. Others, such as Goldman Sachs, maintained a more cautious stance, highlighting the uncertainties still surrounding the Neutron development program.

All attention is now fixed on the first quarter of 2026. A successful maiden flight for Neutron at that time could quickly reignite investor confidence and propel the stock forward. Any further delays, however, would undoubtedly intensify the pressure on the company. While Rocket Lab aims to set a new annual record for Electron launches in 2025, its long-term competitive future is inextricably linked to the success of the Neutron rocket.