Why Did RKLB Stock Fall 10% Despite 62% Revenue Growth and Record Backlog?

And great forward guidance…

Sarcasm?

if you believe in the company, then it's at a 10% discount. if you had to ask, then don't invest in it.

Yeah I’m putting more in

That's not how discounts work lol.

depending on one's perspective.. no need to be ms. smartypant..

Who would buy RKLB when SpaceX is better.

Spacex is a AI company. Good luck with space data centers

**Probably more likely** **than** **AST becoming a $200 stock.**

Spacex is definitely worse than anthropic and oai

Because it's grossly overvalued. I'd be interested under $8

I too would be interested in Google at $20.

If Scarlett Johansson proposes to me, I might be interested

Got to hear out all your options first.

I'd be interested in RKLB at under $8 because that's the fair value of the company. Google at $20 is just silly.

Im not even a rklb bull, in fact the opposite. But where I share the WTF, is whatever my opinion of rklb, it shared good news... And dumped. This happens all the time to my stocks too, today upwk (I did predict this and presold a large chunk 😉), few weeks ago Adobe, brbr dumped 20 percent in the am, and recovered by the end of day... It's like news reminds the market it exists, it's not memory or chips, and must be dumped.

That's because that good news, and so much more was already more than priced in. It's hard for a stock trading at 10x fair value to meet the expectations of the market so you'll often see them drop regardless of what they report. Live by the vibes, die by the vibes.

Actually this makes great sense for say an rklb or oklo. How do explain an Adobe triple beat? Or even just very solid results for upwk today and 20 percent dump at will? Both already undervalued. Meanwhile a slight beat on docs sends it up 60 percent... I tell people, if I had insider information on the actual business results in this market, I don't think that would make me money.

Adobe EPS was below expectations…

Remember stock market is 6 months ahead. The current price has been baked in already.

Kinda maybe explains at least the prior upwk dump bc they lowered guidance, still doesn't explain Adobe triple beat where they raised guidance. And I don't buy that bullshit cfo leaving excuse, since when is any one cfo the key lynchpin in a 100b enterprise.

But when it was going up on negative earnings, did you have that WTF moment? Didn't think so.

Please share what you think the good news was and what your original expectations were. Obviously they were below analyst expectations or it wouldn’t have dumped…

Theres groups that short on earnings basically..rklb load up when it was 72-74 premarket was probly a good buy

The valuation already factors in the next 10 years.

So I can afford more!

Money went to SPCX

Because this was priced in already, investors are taking profits.

The reaction difference is insane in other subreddits for saying this lmao. This comment would be up for a ban in MU when they are surprised nobody outside of their circle thinks MU will be worth more than Nvidia.

What is « MU »? Manchilds united?

Macaroni Utopia

Mustache Uprising

Manbuns Unlimited

Moonboys united

horrendously overvalued, the value is in FLY now

People figure there's no catalyst coming until next quarter so they bail.

If a stock needs 'catalysts' beyond earnings to justify the price then you're just gambling.

lol your crusade in this thread is amusing.

He’s bag holding his rocket ship company let him cope

Not really, you just don't have the same risk appetite. People frontrun future profits all the time to increase returns, it just comes with more risk. If returns were purely based off earnings, someone could write a very simple piece of code to buy and sell when it deviates. Nobody would ever beat the market.

All pump going into SPCX now

First time, huh?

I think money flowed into Spacex

I thought it was because people are worried about Neutron delays.

$200M quarterly revenue on $50B valuation, that's why it dropped

You tell people this stock is 10x overvalued and they get really, really upset. Bag holders everywhere.

stock market is dominated by companies like these and they still go up...not sure what you are getting at the game has changed a long time ago

Your argument for rklb not being overvalued is that other companies are also overvalued? Wow that’s a strong argument

My argument is just because a company is overvalued doesn’t mean it won’t pump. Also, if you value company only on its revenues, you are an idiot.

So what's the alternative? Vibes?

Future potential, market share, competitors disadvantage, current + potential backlog Tell me, when you sell a business, aren’t you supposed to multiple the annual revenue by 4-5x? People just love to shit on anything these days

Right, those things can tell you whether a business is good or bad. But they aren't valuation. How do you know if you're getting a good deal or overpaying?

We as individuals dont decide that. The reality is rklb space x asts live in a space that is overvalued and it is what it is. People are betting space is the next big thing and earnings will more than triple in the next few years as we get more involved with space.

So you just buy the stocks you like blindly at any price? That's a foolish investment strategy.

How did you get that from what I said about sector valuation?

Ok I'll try again. This is a genuine question. Let's say I like RKLB and think it has significant potential in the long term. How do I know whether the stock is over or undervalued at any particular point?

When you come to a restaurant, you pay for a meal which may taste bad or good, right? How do you know you are getting a meal worth the price you paid?

An easy example is a drug company who have some Blockbuster drug that is about to get FDA approval - you wouldn't value it based on last year's revenue with that revenue is set to double or triple this year.

vibes investing, vibes coding, vibes relationship. vibes is so ai.. :-)

That is literally a good argument though. Overvalued and undervalued are relative terms to the other companies in the sector/market being over/under valued. Even if by absolute terms the valuations seem off.

Can’t wait to get home to create a stock screener - the criteria of companies that lost money or have not enough revenue that have grown more than 20 or 50% over that past 52 weeks.

Unless you got in over a year ago. Then we just laugh at bearish takes like this for being stupid and wrong.

3 months ago may 11: 124 4 months ago April 13: 84 As you can see the difference from 124-84 is 40. And as we know +40 is the same as -40. 84- -40=124 idk man their math works out…

?

I saw one of those ads like 3-4 months ago that always say "this stock is going to explode because x,y,yz" without ever actually telling you the stock name....and it was 100% Rocket Lab. I laughed and It's only gone down since I saw that.

Children dont get it.

Huh….but r/spcxinvestors keeps telling me its going to moon on $4B quarterly on a $1700B valuation… is my investment at risk?!? what do?!? (/s)

Sold on faith and belief No different than a religion

buy on hunch and sell on doubts. that's 20th century investing; just like gambling.

All space stocks are a scam with unrealistic valuations at the moment

Space is a defense industry now and that budget is only increasing across the world.

Still doesn’t mean it isn’t vastly over valued . Space industry is in its infancy so until it’s viable it will stay speculative.

I watch the rockets go up every week. There is even one tonight: |The U.S. Space Force has approved the launch of a SpaceX Falcon 9 rocket carrying the Starlink 17-49 mission to low-Earth orbit, Tuesday, Aug. 11, 2026, between 7:00 p.m. – 11:00 p.m. PT from Space Launch Complex 4 East (SLC-4).| |:-|

Nice I follow on Next Spaceflight app

I literally started in Space stocks because of all the launches. It is hard to ignore the activity when you can see it.

Article has a FAQ with the first point highlighting RKLB is operating at a loss. $50B valuation is extremely overhyped.

Every startup is operating at loss

Zum glück macht Space X auf 1.500 Mrd Bewertung, ganze 500Millionen Verlust. Und super das ich durch den NASDAQ dazu verpflichtet bin den Müll im Portfolio zu halten

Explain SMR earning report lol

Wasnt this knowable before?

It was but in the past two month a lot of ppl bought puts and so they're pushing every piece of negativity the can to make bank.

Surprised people don't invest in MDA space more. Higher revenue, profitable company, ~5B$ valuation

They run on positive numbers, slow growth, profit, and a proven track record. They dont run on hype and they're name doesnt sound cool like RocketLab or SpaceX. Who would ever invest in something so stupid and consistent.

Yeah but think how much gold is present within a few light years of the earth!

This is what always gets me, people need to look at overall marketcap. Double so if there is a rating increase and people can make more money in a risk free investment vs buying at 50 times revenue

$200M quarterly revenue on $50B valuation, that's why it dropped

And non-stop articles about people using it for grooming children...

$200M quarterly revenue on $50B valuation, that's why it dropped

And non-stop articles about people using it for grooming children...

$200M quarterly revenue on $50B valuation, that's why it dropped

And non-stop articles about people using it for grooming children...

I guess asts reported 200 billion so the stock remained green lol

Market expected 69420% revenue growth

1% less is already enough reason

It’s a cruel market

Long Backlogs are generally not great. Inflation, time for new competitors, customers who don’t want to wait go elsewhere. It’s also very easy to price.

Go where, SpaceX?

he really said time for new competitors in a space rocket industry….

They don’t really compete directly. But just in the small payload market there are other companies that can launch.

Look at the market cap and revenue you know the answer already

Stocks, especially growth stocks are not evaluated based on their current revenue vs. market cap but the anticipated ratio. Will space get more important? Yes Will RKLB be well positioned in that game? Yes Do they have a competitive advantage? Yes Is their operation execution good? Yea Question is will it be as good and profitable in a couple of years as people think it will be

You’re basically saying the same thing. Does revenue/guidance match/exceed expectations? No, down it goes

P/S ratio is too high. It’s nearly as high as SpaceX, but SpaceX has more stories to boost for its price.

My swing trade turned into long term investor fuck

Peak was 150 USD a couple of weeks ago. Who cares about 10% post-earnings volatility

No crying in the casino

Sector rotation out of tech, and sentiment, a more 'show us the income and justify your market cap" mentality. 

Anything good news related with RKLB = Share price drop. It’s standard.

Recommendation to avoid the rklb sub like the plague. Express valuation concerns and you get death threats and doxx attempts. Simply said neutron won't fly this year and that margins are squeezed and nearly had to relocate to another country lol

Dropped to the level of last week…

It's what others have said, "It's too expensive." But just to add perspective to this, even if they continued their YoY growth momentum, it would still take them 2-5 years to get to a positive P/E (The time it would take you on paper to even begin making a profit). So, unless something massive changes in their development, they are just too extremely expensive. This is why some people (like Buffet) believe there is a gross overvaluation in the market. People have forgotten fundamentals. The money isn't growing as fast as our hopes and dreams and the things we think these companies can achieve are far more into the future than people are acting presently. In short, it needs to drop WAY more to make any real investor put their smart money down.

Because Neutron is delayed

Hey one guy in here who actually knows what he’s talking about*^

Much more reasonable valuations and growth potential in MDA space

Although the second quarter revenue data is very impressive, the company's guidance for next quarter (Q3) revenue or adjusted EBITDA is often lower than the general expectations of Wall Street analysts. For overvalued growth stocks, once there are signs of slowing growth or future guidance that falls short of expectations, the market will immediately conduct a valuation reassessment.

Valid concern, guidance matters more than current quarter beats.

Priced in

Falling behind to the commen investor.

Revenue beat isn't always a share-price pop, especially with cash burn and dilution. That $3B offering a month back set a different tone, RKLB sank after-hours on it and the overhang hasn’t cleared. Could be wrong tbh.