Rocket Lab shares fell as cash burn concerns overshadowed record $200 million quarterly revenue and acquisition gains.
Rocket Lab (NASDAQ: RKLB) shares declined 13% over the past month, paring deeper losses after a 30% drop, despite reporting a 63% year-over-year revenue increase to $200 million in the first quarter. The growth was driven by higher demand for launch services and space systems, alongside the completion of its Mynaric acquisition, expanding its European footprint.
The company posted a narrower-than-expected adjusted operating loss but faced investor scrutiny over negative $77 million free cash flow, exceeding analyst expectations. CEO Peter Beck emphasized Rocket Lab’s vertically integrated model as a long-term cost advantage, aiming to capture a larger share of a space economy projected to reach $1.8 trillion in two decades.
Despite near-term volatility, management framed the pullback as typical for growth-stage companies, with the core investment thesis intact. The stock’s rebound suggests mixed sentiment among investors balancing short-term cash burn against long-term potential.