Rocket Lab Stock Plummets Amid Valuation Concerns
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Rocket Lab shares tumbled 11% on Wednesday as investors reassessed the company's lofty valuation. The drop follows a rally driven by retail enthusiasm and the completion of a new launch pad for its Neutron rocket.
Despite boasting a $22 billion market cap, Rocket Lab generates just $500 million in annual revenue and remains unprofitable. The space firm lost nearly $200 million over the past year before accounting for substantial depreciation costs associated with rocket manufacturing.
The stock's 600% surge over the past year reflects investor Optimism about challenging SpaceX's dominance. However, today's selloff suggests growing skepticism about the company's ability to justify its premium valuation through operational performance.
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