Dumb Money Has Fled Rocket Lab Stock. Is It Finally Safe to Buy?

Core Viewpoint - Rocket Lab's stock has experienced a significant decline of 38% following the announcement of a delay in the launch of its Neutron rocket, which is now expected in early 2026 instead of 2025 [3][8] Company Performance - Rocket Lab's stock price peaked at nearly $74 on October 15, reflecting a 176% increase since the beginning of the year, but has since fallen to below $43 [2][3] - The company has successfully launched Electron rockets 75 times with a 93% success rate and aims to conduct at least 20 launches this year [5] - Despite not being profitable yet, Rocket Lab has increased its annual revenue 15 times over the past five years and achieved a gross profit margin of 32% [6] Financial Outlook - Analysts predict that once Neutron begins launching, Rocket Lab will achieve profitability on a GAAP basis and generate positive free cash flow by 2027 [7] - The current market capitalization of Rocket Lab is approximately $22 billion, with a price-to-sales ratio of 40 based on trailing sales of $555 million [9][10] Market Sentiment - The stock was previously considered a momentum stock, but the recent decline has led to skepticism among analysts regarding further investment [4][10] - The delay in the Neutron launch has raised concerns about the company's growth trajectory and profitability timeline, leading to a cautious stance from analysts [8][10]