Disaster Stock Of The Day: Rocket Lab Stock Crashes Following Launch Failure (RKLB)

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Rocket Lab USA, Inc (NASDAQ:RKLB) stock is trading lower Tuesday after the company's 41st mission succumbed to technical Issues.

The aerospace manufacturer and small satellite launch service provider encountered a setback during its 41st mission.

The incident occurred after the rocket's successful liftoff from Launch Complex 1, completing the initial stage burn and separation as planned.

Transcript

00:00 Disaster stock of the day. Rocket Labs. RKLB. Rocket Labs sliding after the launch. Failure leads to the loss of payload.

00:12 I don't even know what this company does.

00:15 They send up rockets. They send up rockets. Literally.

00:19 And they've struggled massively throughout this whole journey.

00:25 I've been seeing them struggle plenty of their... This was one of the rockets that bounced kind of like it went up and then came to the left and then went up.

00:34 Like there's a lot of problems in Rocket Labs.

00:37 They're not Elon Musk.

00:38 Yeah, they're not Elon Musk.

00:39 This is not SpaceX.

00:40 This is not SpaceX. I would agree with that. Right off the front, they've been struggling with these.

00:45 And now to lose a payload on one of these rockets, that's going to definitely hit them hard.

00:51 Of course, a SPAC.

00:53 SPAC. That's what I was just going to say. SPAC. I mean, wow, the pop to $8.

00:59 If you're trading this, either wanting to cover short or initiate a long, you did dip under $4 to $3.60.

01:10 But based on the fact that you're already 40 cents above that level, I don't think you see it in a regular session.

01:17 But who knows? That's potential support.

01:20 And then where's all these lows? All these daily lows? They're in that area too.

01:25 So there's your potential support.

01:27 If you're going to play this for a gap fill, you got to get up to $5.02.

01:31 2.2 million shares have traded here.

01:35 So people are taking note of this thing going down.

01:40 Look at the chart of SPCE.

01:42 And then look at the chart of RKLB.

01:45 Because eventually it's going to look like SPCE.

01:48 That's my opinion. I know nothing about this company.

01:50 I didn't know what they did two minutes ago.

01:52 But if you're trying to fight Elon Musk and SpaceX launching rockets, that sounds like a money-losing adventure.

01:57 Because nobody's going to do it better than Musk.

01:59 I'm not going to try to compete with Musk.

02:01 I'm not going to buy this stock because then I'm directly competing with Musk.

02:04 And you think about how long SpaceX suffered.

02:08 You remember he did watch the documentary?

02:10 He's on his last rocket, borrowing money from all the money he made from PayPal, trying to launch that.

02:15 And it was like, it was it.

02:18 They were going to be bankrupt if this doesn't launch here.

02:21 And they did it.

02:22 And now they're one of the best at it.

02:24 I mean, SpaceX is an unbelievable company.

02:26 Musk, again, showing, "I don't want to buy RKLB and compete with Musk. Sorry."

02:30 Mitch, what was that other stock you used to mention in this group?

02:34 I thought it was MAXR or a satellite company.

02:38 Yeah, MAXR.

02:40 But it went off the table.

02:42 So, comparable companies would be Planet.

02:45 It went private.

02:46 It went private.

02:47 And then another company would be Black Sky.

02:51 BXSY, I think.

02:53 Okay.

02:54 All right.

02:55 They're not doing great.

02:57 Space companies are not doing great.

02:59 But I mean, one of the things that could have told us this right off the top, and I mean, I'll show you guys this.

03:05 So, a lot of people are like, you know, questioning if Rocket Labs really had some struggles.

03:09 Just look at this, guys.

03:10 This was in like 2021, and they were already having their rockets blow up.

03:16 And I think that, you know, situations like this can tell you something, right?

03:20 I mean, when one of their rockets does this and kind of just kind of has, you know, like an explosion kind of reaction,

03:28 things like this are not what you want to be seeing, right?

03:31 Satellites lost, things like this.

03:33 They've already lost payloads before.

03:35 And so things like this is what I immediately look at when I'm looking into these space companies.

03:41 And what you want to see is big contracts.

03:43 So that's what I used to look at in Maxar, the government contracts.

03:47 That's what I was watching.

03:49 I'd watch when government contracts were due to repeat and look for more companies.

03:54 That's why I started liking Black Sky and Planet Labs, because what did they say?

03:58 They were going to move from only Maxar to trying to go to three competitors to try to get the best technology.

04:05 Things like this is how you get on top of the stream.

04:07 It's just tough to compete with SpaceX here.

04:08 I'm just going to go back to like, why do I want to?

04:10 You've seen what's happened to General Motors and Ford, you know, when you compete with Musk.

04:14 And honestly, like NASA's with SpaceX.

04:16 I mean, you're trying to be the next SpaceX, but it's just tough to do.

Disaster Stock Of The Day: Rocket Lab Stock Crashes Following Launch Failure (RKLB)

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