Rocket Lab stock price tumbled below a key support level as investors reacted to the new developments about Neutron, its next generation vehicle. RKLB dropped to $54.54, its lowest level since December 2025. It has dropped by 65% from its highest point this year, erasing billions of dollars in value.
Rocket Lab delays Neutron launch date
RKLB stock has remained under substantial pressure this month and its sell-off accelerated on Wednesday after the company announced that it was delaying its Neutron launch.
The company now expects to delay its launch to some time in 2027. It did not reveal the month, and instead suggested that the delay was necessary to ensure safety. This is a big issue for the company as the company is banking on Neutron to grow its sales. According to Bloomberg, the company identified a new issue with how the propellant tanks are manufactured.
Neutron is its reusable medium-lift rocket capable of deploying payloads weighing 13,000 kilograms, much higher than what Electron carries. Once it goes to service, Neutron will compete with SpaceX’s Falcon 9 and Blue Origin’s New Glenn.
This is not the first time that Neutron has been delayed. It has been delayed since 2024, leading to substantial losses for the company. These losses will likely continue in the foreseeable future because of the new delay.
Rocket Lab’s stock is also falling as competition in the industry intensifies. SpaceX has continued to maintain a big market share, especially in NASA’s contracts. Blue Origin recently raised cash at a $140 billion valuation as it seeks to become more competitive in the launch industry.
Rocket Lab’s business is doing well
Aside from the new Neutron issues, there are signs that Rocket Lab’s business is doing well. The most recent results showed that its revenue and backlog continued rising in the second quarter.
Its revenue rose by 62% in the second quarter to $234 million, with most of them coming from its space systems. The rest of the revenue came from its launch business.
The company’s backlog jumped to over $2.2 billon, with 60% of them being commercial clients and the other ones being government. This is important because it shows that there is strong demand for its solutions.
Analysts expect the upcoming results to show that its revenue jumped by 65% to $257 million. The most optimistic analyst expect the revenue to jump to $265 million. For the year, analysts expect its revenue to jump by 60% to $960 million.
Rocket Lab stock technical analysis
The daily chart shows that the RKLB stock has been under intense pressure in the past few months. It has now dropped below the important support level of $59.18, its lowest level in July and September this year. Moving below this level is a sign that bears have finally prevailed.
The stock has slumped below the 50-day and 100-day Exponential Moving Averages (EMA). It remains below the Supertrend indicator. Therefore, the path of the least resistance is downwards, with the next key target to watch being at $50.