Rocket Lab stock tanks 25% on launch failure

Rocket Lab USA Inc (NASDAQ: RKLB) is down 25% in premarket today after announcing its first launch failure since May of 2021.

Rocket Lab had a streak of successful launches

The California-based company built a streak of nineteen successful launches over the past two years. But its 41^st Electron that launched from New Zealand this morning failed less than three minutes into the flight.

The orbital launch vehicle took off with the Acadia 2 satellite for Capella Space.

Last month, the Nasdaq-listed firm reported a wider-than-expected loss for its second financial quarter. Its revenue, though, had come in marginally ahead of analysts’ forecast. Rocket Lab stock is now down roughly 50% versus its year-to-date high.

Rocke Lab will now revise its third-quarter guidance

Rocket Lab has already launched an investigation in collaboration with the FAA (Federal Aviation Administration) to uncover the cause that resulted in the failure today.

The aerospace manufacturer now expects its 42^nd Electron rocket launch to be delayed. It will soon revise the guidance for its third financial quarter accordingly.

In August, the 17-year-old company based out of Long Beach had forecast up to $77 million in revenue for its fiscal Q3 – of which about $30 million was supposed to come from its launch services.  

RKLB is second only to SpaceX on the list of most active rocket companies in the United States. Wall Street currently has a consensus “overweight” rating on Rocket Lab stock.