NEW YORK, Feb 5, 2026, 12:14 (EST) — Regular session underway.
- Rocket Lab shares dipped in midday trading, continuing a volatile week for space stocks
- Investors are balancing changing U.S. space-policy signals with the pace of launches and emerging programs
- Attention now shifts to Rocket Lab’s Feb. 26 earnings and any fresh details on the Neutron rocket schedule
Shares of Rocket Lab Corporation dropped nearly 6% on Thursday, hovering around $69 as the stock continued its recent slide affecting several space-related companies this week. By roughly 12:15 p.m. EST, the Nasdaq-listed stock was down 5.9% at $68.74, with about 11 million shares changing hands. This followed a 10% plunge in the previous session, according to MarketScreener data.
This shift is crucial as Rocket Lab stands as a quick-play proxy for sprawling themes like government space budgets, defense satellites, and the fresh “AI in orbit” trend — all while it ramps up its heavy-lift capabilities. Sentiment around it rarely moves gently; when it shifts, it often does so sharply.
On Tuesday, Elon Musk announced that SpaceX had merged with his AI company xAI, valuing the new combined entity at $1.25 trillion. The news sparked a rally in U.S.-listed space stocks like Rocket Lab, Planet Labs, and AST SpaceMobile. AJ Bell investment director Russ Mould suggested the move might “whet the appetite” for a potential SpaceX IPO. Meanwhile, Seraphim Space CEO Mark Boggett described it as “the strongest validation yet” that space will drive AI’s next wave. Reuters
Investors have also been rethinking longer-term plays linked to NASA science missions. According to Scientific American, a “minibus” spending bill cleared by the House on Jan. 8 has effectively gutted NASA’s Mars Sample Return program, slashing nearly all funding for future phases. Rocket Lab CEO Peter Beck had earlier estimated the company could handle a Mars sample return for $4 billion, targeting a 2031 mission return.
Rocket Lab highlighted its focus on execution and launch cadence. At the end of January, the company marked its 81st Electron mission, completing two launches within eight days. The latest sent a South Korean Earth-observation satellite into orbit from its New Zealand facility. “Two launches in eight days is a strong start to the year,” Beck said then. GlobeNewswire
Neutron remains the key variable for many investors—Rocket Lab’s reusable medium-lift rocket designed for bigger payloads and constellation missions. In January, the company reported that a Stage 1 tank ruptured during a hydrostatic pressure test, which fills the tank with liquid to check its integrity. Rocket Lab is now reviewing test data to determine how this might affect the launch timeline. They also confirmed there was no major damage to their facilities, and production of the next tank is already underway.
Rocket Lab will release its fourth-quarter and full-year 2025 earnings after the U.S. market closes on Feb. 26, the company announced. A conference call is scheduled for 5 p.m. ET that day.
That said, the risks run both ways. Should Neutron face bigger delays than anticipated, or if budget decisions in Washington tighten funding for key science projects, the stock could dive fast—even if Electron continues to perform well.
Traders are zeroing in on one date: Feb. 26. That’s when investors expect more clarity on Neutron’s timeline and hints on how Rocket Lab intends to juggle launch frequency alongside its wider space systems ambitions.
