Rocket Lab Stock Falls Back Down to Earth

Kids who want to be astronauts epitomize the primal desire we all have to discover the unknown. Now that our small planet can be explored by generally anyone with resources, space is truly the final frontier. Investors seem to find the NewSpace thesis particularly alluring because it’s filled with excitement and exploration of the unknown. It’s also filled with lots of risks as you would expect from any company that makes a living sending canisters of fuel rocketing into space with millions of dollars’ worth of cargo attached.

When you couple a rocket company with a charismatic Kiwi leader who is an absolute legend, you get Rocket Lab (RKLB), a company that’s attracted a solid fan base on Twitter of people who show their adoration for the stock with a little rocket icon. And they weren’t happy at all when we published a piece in November 2021 titled Why We’re Avoiding Rocket Lab Stock – RKLB in which we said the following:

Rocket Lab shares would need to trade at $5.14 before we’d consider buying them based on 2021 revenues. Smart investors don’t buy into hype, and there appears to be plenty of that right now.

Nanalyze

Since we published that piece, shares of Rocket Lab have fallen 50% vs. a decline of