Rocket Lab Stock Plunges After Unveiling $750M Equity Offering Plan

Sep 16 - Rocket Lab USA RKLB dropped 3.5% in early Tuesday trading after the company revealed a new at-the-market equity program valued at up to $750 million.

The plan gives Rocket Lab the option to sell shares in stages at current market prices through several underwriters rather than issuing the full amount at once. Management is not required to use the entire authorization and can suspend the program if conditions shift.

Such offerings often serve as a tool for raising capital with flexibility, though they can weigh on investor sentiment because of dilution risks. Rocket Lab is seeking additional resources to support expansion in satellite launches and its growing space systems unit.

Despite the dip, RKLB stock still trades well above its 52-week low of $7.00 and has soared more than 180% in the past six months.

Shares recently touched a 52-week high of $55.17, underscoring the strong run-up ahead of the announcement. Short interest sits at 12.4% of float, reflecting a sizable group of skeptics even as momentum investors continue to back the stock.