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Rocket Lab Drops as Rate Jitters Test Post‑Earnings Rally

Rising rate fears are testing a rally that followed a strong quarter.

Overview

  • Rocket Lab shares fell as higher Treasury yields and talk of a SpaceX IPO pressured fast-growing stocks.
  • The pullback followed a 5.1% surge the prior session that reached a $138.38 intraday high on trading volume about 36% above normal.
  • Investors had driven the stock higher after May 7 results showed $200.35 million in revenue, a $2.2 billion backlog, and access to more than $2 billion in liquidity.
  • Analysts raised targets after the report, led by Deutsche Bank to $120 with a Buy rating, while the broader view is a Moderate Buy near a $100 average target.
  • Management says the first Neutron medium-lift rocket launch remains on track for later this year, which many on Wall Street view as the next key catalyst.