Rocket Lab shares plunge 22% amid Blue Origin explosion and SpaceX IPO uncertainty

Rocket Lab’s share price fell more than 20% in a single week, dropping to around €95.50 (about $110) after a 22.36% decline on the Frankfurt market and a 25% slide on Nasdaq. The sell‑off was driven by a convergence of sector‑wide pressures.

Investors were shaken by Blue Origin’s New Glenn rocket explosion at Cape Canaveral, prompting broader doubts about space‑flight companies. At the same time, a stronger‑than‑expected U.S. jobs report (172,000 jobs added in May) heightened expectations of Federal Reserve rate hikes, which hurt growth‑oriented tech stocks. Adding to the strain, SpaceX trimmed its planned IPO valuation from roughly $2 trillion to $1.77 trillion, leading to a reassessment of other space‑tech valuations.

Insider activity also surfaced, with company directors selling shares worth about $66.9 million in the preceding 90 days. Rocket Lab responded by appointing Agostino Ricupati as chief accounting officer. Despite the stock dip, the firm reported solid operating results: Q1 2026 revenue of $200.35 million, a 63.4% year‑over‑year increase, and an order backlog of $2.2 billion, anchored by the upcoming Neutron rocket slated for a 2026 debut.