Why Rocket Lab Stock Just Crashed

Core Viewpoint - Rocket Lab's stock has significantly declined following a report from Bleecker Street Research, which claims that the launch of Rocket Lab's Neutron vehicle will be delayed much longer than anticipated, potentially until mid-2026 or even mid-2027 [1][3]. Group 1: Stock Performance and Market Reaction - Rocket Lab's stock fell by approximately 10.65% after the release of the short report, indicating a strong market reaction to the news [1]. - The stock had previously surged by 485% over the past year, primarily due to investor excitement surrounding the upcoming Neutron launch [2]. Group 2: Launch Timeline and Development Concerns - Bleecker Street asserts that Rocket Lab has misled investors regarding the timeline for the Neutron rocket, which was initially targeted for a mid-2025 launch [2]. - Conversations with 23 unnamed rocket experts suggest that critical aspects of the rocket's development, including engine production and launch pad construction, are significantly behind schedule [3]. Group 3: Additional Concerns Raised by Bleecker Street - Bleecker Street questions Rocket Lab's customer list and expresses concerns about the pricing strategy for the Neutron rocket, as well as the company's cash reserves and burn rate [4]. - Some of the experts consulted by Bleecker are former Rocket Lab engineers and executives, lending credibility to their claims about the company's challenges [3][4].