Rocket Lab Shares Sink to $68 After $8 Billion Iridium Deal as SpaceX Draws Investor Cash
Updated
Updated · The Motley Fool · Jul 22
Rocket Lab Shares Sink to $68 After $8 Billion Iridium Deal as SpaceX Draws Investor Cash
3 articles · Updated · The Motley Fool · Jul 22
Summary
Rocket Lab opened the week of July 20 near $68, down from $151 in late May, extending a sharp retreat in the space stock.
An $8 billion agreement to buy Iridium, partly backed by bridge financing, has weighed on sentiment alongside insider selling and investor rotation into SpaceX.
Q1 results still showed revenue just above $200 million, up 63.5% year over year, with backlog reaching $2.2 billion and 31 new launch contracts signed.
Early-August Q2 results are the next test, with Rocket Lab guiding revenue as high as $240 million despite continued volatility across space-related stocks.
The pullback comes after a multiyear surge of more than 500%, leaving Rocket Lab with a market value above $40 billion in an industry projected to approach $800 billion next decade.