Why Rocket Lab Stock Is Sinking Today

Stock Performance - Rocket Lab stock experienced a significant drop of 5 3% as of 2 45 p m ET on Thursday following a 28% gain the previous day [1] - The stock had surged as much as 53% earlier in the day due to stronger-than-anticipated Q3 results [3] Earnings and Financials - Rocket Lab reported a Q3 loss of $0 10 per share on sales of $104 8 million, beating Wall Street expectations of a $0 11 per share loss on $106 4 million in sales [4] - Revenue increased by nearly 55% year-over-year, and the company provided strong forward guidance, projecting Q4 sales between $125 million and $135 million, representing a 24% sequential growth at the midpoint [4] Investor Activity - Cathie Wood's Ark Invest sold approximately 479,600 shares across its ETFs, totaling nearly $9 million in value, as part of profit-taking following the stock's rally [5] - Other investors also moved to take profits, contributing to the stock's decline [2] Analyst Coverage and Outlook - Cantor Fitzgerald maintained a buy rating on Rocket Lab and raised its one-year price target from $7 to $24 per share, citing the company's contract for its reusable Neutron rocket [6] - Bank of America also raised its one-year price target from $10 to $30 per share, highlighting the Neutron rocket's adoption as a sign of reduced risk [6] - Despite the recent sell-off, Rocket Lab is viewed as a high-risk, high-reward investment with encouraging progress [7]