Rocket Lab Stock Has Crashed 40%: Should You Buy the Stock Right Now?

Core Viewpoint - Rocket Lab USA has experienced significant stock volatility, with shares rising over 7x in less than a year before recently declining by 40% due to concerns over the Neutron rocket's development timeline [1][2]. Company Performance - Rocket Lab has established itself as the second private company in North America to reliably launch rockets, focusing on small payloads with its Electron rocket, which achieved a 100% mission success rate with 16 launches in 2024 [3]. - The company has rapidly developed a Space Systems segment, generating $311 million in revenue in 2024, up from$172.7 million in 2023, contributing to a combined revenue of $436 million, a significant increase from less than$100 million a few years ago [4]. Future Prospects - The Neutron rocket, expected to debut in 2025, is anticipated to allow Rocket Lab to charge customers at least $50 million per launch, compared to under$10 million for the Electron [5]. - There are concerns that the Neutron rocket's development may be delayed until 2026 or 2027, which could impact the company's cash flow and necessitate additional funding [6][9]. - If the Neutron development proceeds as planned, Rocket Lab could see rapid revenue growth and potential profitability, alongside plans for a satellite constellation to offer software services [8]. Current Financial Status - Currently, Rocket Lab generates less than $500 million in revenue and incurs losses of nearly$200 million annually [10].