New York, Feb 2, 2026, 14:48 EST — Regular session
Rocket Lab shares dropped over 5% Monday afternoon, deepening a steep retreat from their January peak as investors reconsidered the company’s growth prospects. By 2:28 p.m. ET, the stock slid 5.35% to $75.79, after dipping to $75.17—roughly 24% shy of its Jan. 16 high of $99.58.
This move is significant as Rocket Lab has become a high-expectation stock, prone to sharp swings on policy news and timing delays. Its recent volatility has drawn heavy interest from both bulls and bears.
Investors are weighing how much of Rocket Lab’s backlog depends on government contracts and how fast it can expand beyond its Electron rocket into more lucrative areas. That discussion is growing louder as the stock loses steam.
Talk around NASA’s Mars Sample Return mission is causing fresh uncertainty. The plan aims to retrieve Martian samples gathered by the Perseverance rover and bring them back to Earth. But a Nasdaq.com article published late Saturday reported that U.S. Congress has pulled funding for the current program, despite Rocket Lab’s $4 billion proposal.
The valuation has intensified the response. Barron’s noted Rocket Lab is currently trading at roughly 45 times its projected sales over the next 12 months, with analysts not expecting a full-year profit until 2027. That leaves scant margin for error.
Rocket Lab has maintained its launch rhythm with Electron. Last week, it completed its 81st Electron mission from New Zealand, putting a satellite into orbit for the Korea Advanced Institute of Science and Technology. CEO Sir Peter Beck described the two launches within eight days as “a strong start to the year.” GlobeNewswire
Investors are zeroed in on Neutron, Rocket Lab’s bigger rocket aimed at taking on SpaceX’s Falcon 9. Space.com reports the “Hungry Hippo” payload fairing—Neutron’s satellite-protecting shell—has touched down at Virginia’s Mid-Atlantic Regional Spaceport. But a failed pressure test on the main stage has thrown the first-flight schedule into doubt.
But when a stock is priced for speed, even minor setbacks can sting. Any hiccup in Neutron’s development, a slowdown in launches, or conservative forecasts on space systems demand could weigh on the shares.
Rocket Lab is set to release its Q4 and full-year 2025 results after the U.S. market closes on Feb. 26, with a conference call scheduled for 5 p.m. ET.
Related articles: NASDAQ:RKLB
