NEW YORK, May 29, 2026, 12:03 PM EDT
- Rocket Lab shares dropped around 6.5% near midday Friday. The pullback reverses some of the gains from a rally that pushed the stock up to a $151 intraday high earlier this week.
- The company has passed a Space Development Agency review for its $816 million missile-warning satellite deal, moving further into U.S. defense space projects.
- Space stocks lost ground after Blue Origin’s New Glenn rocket blew up in a test and Bloomberg said SpaceX was aiming for a $1.8 trillion IPO, less than its earlier target of over $2 trillion.
Rocket Lab USA shares dropped hard Friday, pulling back after a strong rally in the small group of publicly traded space stocks. Losses came as investors weighed a failed Blue Origin test and a sign SpaceX may go public at a lower valuation. The stock slipped 6.5% to $138.37 around midday in New York, putting Rocket Lab’s market cap close to $83.8 billion.
Rocket Lab is now a key way for investors to play launch services, satellite manufacturing and national security space in public markets before SpaceX lists. The stock closed Wednesday at $150.23 after hitting $151. Shares dipped Thursday and dropped again Friday.
Rocket Lab said Wednesday it cleared a System Requirements Review for the Space Development Agency’s Tracking Layer Tranche 3 satellite project, which is focused on missile warning and tracking. The System Requirements Review is a key engineering check, making sure the customer’s needs are met and setting the technical plan.
Rocket Lab USA president Brad Clevenger said the review “demonstrates our technical readiness” and backs the company’s strategy for space infrastructure. Rocket Lab put its SDA awards above $1.3 billion after the new $816 million deal and an earlier $515 million Transport Layer-Beta Tranche 2 contract. GlobeNewswire
Rocket Lab jumped more than 7% in premarket trading Wednesday after its missile defense solution passed the SDA review, Stocktwits reported in a piece also published by Yahoo Finance. Stocktwits said shares were surging at the time of writing.
Cantor Fitzgerald kept an Overweight on Rocket Lab and held its $96 price target after the company’s latest updates, according to Investing.com. The broker pointed out several risks like possible Neutron delays, regulatory issues, budget reductions, payload failures, supply-chain problems and tech hurdles. Neutron, now in development, is Rocket Lab’s planned medium-lift rocket that will carry more than the smaller Electron.
Rocket Lab is expanding beyond launches. The company on Tuesday wrapped up its buyout of Motiv Space Systems, now called Rocket Lab Robotics. The deal hands Rocket Lab robotic arms, actuators and spacecraft gear used on Mars by NASA’s Perseverance and on the CADRE lunar rovers. CEO Peter Beck said Rocket Lab now has “everything needed to lead the next era of Mars exploration.” GlobeNewswire
Rocket Lab picked up a $90 million contract from the U.S. Space Force a few days back to handle design, build and ops for two geostationary satellites that will carry the Heimdall space-domain-awareness payload. Geostationary orbit is high up, with satellites moving in sync with Earth’s spin, so they look like they’re parked over the same spot. Rocket Lab called this its first satellite program for that orbit.
SpaceX has cut its IPO valuation target to at least $1.8 trillion, Bloomberg reported Friday via The Edge Malaysia. That’s down from earlier talks above $2 trillion, after discussions with advisers and investors. SpaceX may look to raise up to $75 billion, start formal marketing as soon as June 4, and may price the offering as early as June 11.
The scarcity case for Rocket Lab is still alive, but it’s getting messier. On Wednesday, a Seeking Alpha contributor called The Curious Analyst put a Buy on Rocket Lab and said a SpaceX IPO could boost valuations in the space sector. The analyst also pointed to AI demand for space infrastructure and more government spending on sovereign space as key factors.
Blue Origin had its turn. Reuters said an uncrewed New Glenn rocket blew up on a Florida launchpad during hot-fire testing Thursday night. Blue Origin said all staff were safe and started an investigation. The New Glenn was supposed to launch 48 Amazon Leo satellites. NASA said it would look at possible effects on its Artemis and Moon Base plans.
Rocket Lab’s high valuation is risky, with not much cushion for any slip. The company still needs to deliver Neutron and turn defense deals into operating satellites. It also has to keep investors on board as space stocks can swing on a failed launch or a cut in IPO valuations elsewhere. Cantor stuck to its bullish call but set a $96 target, which is below where shares traded Friday.
Rocket Lab’s business is pulling in contracts and acquisitions, with a growing backlog giving bulls something to point to. On the other hand, SpaceX’s roadshow, trouble for Blue Origin, and progress (or lack of it) on Neutron are going to show just how much appetite there is for pure-play space stocks.
