Rocket Lab Just Delivered Record Results. So Why Is the Stock Sinking?

Rocket Lab (RKLB) dropped 8% in after-hours trading despite posting record second-quarter revenue of $234 million, up 62% year-over-year, and a record backlog of $2.36 billion. The space launch and systems company beat top-line analyst estimates but missed on the bottom line with a net loss of $49 million and a loss per share of $0.08—worse than Wall Street's expected $0.03 loss per share.

The earnings miss overshadowed otherwise strong operational metrics. The company's $2.36 billion backlog signals robust demand for its Electron launch vehicle and space systems division. Management issued what the source described as strong third-quarter guidance, though specific figures were not disclosed.

The stock trades at 65 times sales, a premium valuation that leaves little room for earnings disappointments. Investors punished the miss immediately, wiping out gains from the revenue beat.