Rocket Lab USA, Inc. (NASDAQ: RKLB) shares plummeted 5.03% during intraday trading on Tuesday, reflecting significant selling pressure.
The decline follows news that Congress has decided to withhold funding for a planned 2031 Mars sample-return mission, creating an overhang that has been pressuring the stock in recent sessions. This funding setback has prompted investors to recalibrate expectations for the company's longer-term opportunities.
Additionally, renewed chatter around a potential SpaceX initial public offering, rumored to be valued above $1.5 trillion, is weighing on publicly traded space names. Investors appear to be repositioning, potentially taking profits from 2025's rally in space stocks and shifting to a wait-and-see posture to preserve capital for a future SpaceX offering. This rotation has contributed to pullbacks across several launch and satellite peers, adding incremental pressure to Rocket Lab shares.
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