Rocket Lab (NASDAQ:RKLB) stock is falling hard on Tuesday as investors react to the company failing a recent rocket launch.
The big news here affecting RKLB stock is the company’s 41st mission failing to reach completion. The company noted that it succeeded in first stage burn and stage separation but an issue at roughly T+ 2 minutes and 30 seconds brought the mission to an end.
Rocket Lab is investigating the failure and will postpone its upcoming launch in Q3 to learn more about what went wrong. The company also mentions that it’s working alongside the Federal Aviation Administration (FAA) to get to the bottom of the issue.
Why This Matters for RKLB Stock
This is a sobering event for investors in RKLB stock as previously the Electron rocket was successful in 37 orbital missions. That marks the first time that the company has failed a launch in over two years.
This is especially damaging to RKLB stock as the company was building a strong reputation as one of the top companies handling rocket launches in the U.S. As a result, the only company above it is Elon Musk’s SpaceX.
RKLB stock is seeing heavy trading today as investors sell their shares. As of this writing, more than 9 million shares of the stock have changed hands. That’s quite the increase over its daily average trading volume of about 4.6 million shares.
RKLB stock is down 8.2% as of Tuesday morning but is still up 19.6% year-to-date.
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On the date of publication, William White did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
