Rocket Lab’s shares lose 10% because of a negative assessment by stock analyst
Because one stock market analyst, Bleeker Street Research (BS) this week issued a negative assessment of Rocket Lab’s schedule for launching its new Neutron rocket, the company’s shares have lost about 10% of their value in the past few days.
In the report, BSR opines that while Rocket Lab has captivated investors with the promise of Neutron, its research shows the promise is built on shaky ground.
BSR believes the Neutron launch won’t take place until mid-2026, and could be delayed until mid-2027. Engine development, structure production, Wallops Island in Virginia, USA, launch pad construction, and transporting Neutron to the site are all factors cited by BSR as driving the delay.
BSR also questioned whether Rocket Lab could get its launch price of $50-$55 million.
Delays in launching a new rocket are to be expected, though as of now Rocket Lab has not indicated any issues that would preclude their predicted first Neutron launch in 2025.
One wonders if this report is merely the typical price manipulation you see all the time from stock market honchos. Issue a negative report which causes the price to drop, and then use that drop to buy up shares at discount prices.
At the same time, the analysis could be correct, though it depends on unnamed sources.
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Because one stock market analyst, Bleeker Street Research (BS) this week issued a negative assessment of Rocket Lab’s schedule for launching its new Neutron rocket, the company’s shares have lost about 10% of their value in the past few days.
In the report, BSR opines that while Rocket Lab has captivated investors with the promise of Neutron, its research shows the promise is built on shaky ground.
BSR believes the Neutron launch won’t take place until mid-2026, and could be delayed until mid-2027. Engine development, structure production, Wallops Island in Virginia, USA, launch pad construction, and transporting Neutron to the site are all factors cited by BSR as driving the delay.
BSR also questioned whether Rocket Lab could get its launch price of $50-$55 million.
Delays in launching a new rocket are to be expected, though as of now Rocket Lab has not indicated any issues that would preclude their predicted first Neutron launch in 2025.
One wonders if this report is merely the typical price manipulation you see all the time from stock market honchos. Issue a negative report which causes the price to drop, and then use that drop to buy up shares at discount prices.
At the same time, the analysis could be correct, though it depends on unnamed sources.
Readers!
My annual February birthday fund-raising drive for Behind the Black is now over. Thank you to everyone who donated or subscribed. While not a record-setter, the donations were more than sufficient and slightly above average.
As I have said many times before, I can’t express what it means to me to get such support, especially as no one is required to pay anything to read my work. Thank you all again!
For those readers who like my work here at Behind the Black and haven't contributed so far, please consider donating or subscribing. My analysis of space, politics, and culture, taken from the perspective of an historian, is almost always on the money and ahead of the game. For example, in 2020 I correctly predicted that the COVID panic was unnecessary, that the virus was apparently simply a variation of the flu, that masks were not simply pointless but if worn incorrectly were a health threat, that the lockdowns were a disaster and did nothing to stop the spread of COVID. Every one of those 2020 conclusions has turned out right.
Your help allows me to do this kind of intelligent analysis. I take no advertising or sponsors, so my reporting isn't influenced by donations by established space or drug companies. Instead, I rely entirely on donations and subscriptions from my readers, which gives me the freedom to write what I think, unencumbered by outside influences.
You can support me either by giving a one-time contribution or a regular subscription. There are four ways of doing so:
1. Zelle: This is the only internet method that charges no fees. All you have to do is use the Zelle link at your internet bank and give my name and email address (zimmerman at nasw dot org). What you donate is what I get.
2. Patreon: Go to my website there and pick one of five monthly subscription amounts, or by making a one-time donation.
3. A Paypal Donation or subscription:
4. Donate by check, payable to Robert Zimmerman and mailed to
Behind The Black
c/o Robert Zimmerman
P.O.Box 1262
Cortaro, AZ 85652
You can also support me by buying one of my books, as noted in the boxes interspersed throughout the webpage or shown in the menu above.
From their required disclosure documents:
“You should assume that Bleecker Street Research (possibly along with or through our members, partners, affiliates, employees, and/or consultants) along with our clients and/or investors has a position in any securities covered herein.”
They do have a short position in Rocket Lab.
I have always wanted to own some rocket stock. hmm.
Stock analysts issue negative report while holding short position.
In other news the Sun rises in the East.
Just another reason I despise suits.
There was a program a few years ago–about a man in real estate who was living in an unfinished mansion with his high maintenance wife and a daughter who would get fussed at for having lights on.
What I remember was one of the family members talking about how the bank essentially tied their hands–I think it was CNBC.
Over at Shark Tank, one guy asked for an investment in an idea he had that was a lot like Neuralink.
They all but laughed him off the set.
It is strange how the same concept spooks one group but inspires others.