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“Rocket Lab Shares Slide After $750M Stock Sale Announcement” 🚨🚨🚨

“Rocket Lab Faces Backlash Over New Stock Sale Plans” 🚨🚨

Rocket Lab’s stock tumbled in early trading after the company revealed plans for an at-the-market (ATM) offering of up to $750 million in securities. The move immediately pressured shares, which fell more than 10%, as investors reacted to the prospect of dilution.

In an ATM offering, companies can sell shares directly into the market at prevailing prices. While this provides flexibility and quick access to capital, it also reduces the value of existing shares—explaining the sharp decline.

Despite the hit to recent investors, Rocket Lab’s decision isn’t entirely surprising. The stock has surged more than 600% over the past 12 months, fueled by growing enthusiasm for the company’s role in the booming space sector. Selling stock now allows Rocket Lab to capitalize on that momentum.

The company said proceeds from the offering will go toward general corporate purposes and working capital. Additionally, part of the funds could help cover the $75 million cash portion of its planned acquisition of Mynaric, a German laser communications firm currently under local bankruptcy protection. That deal, first announced in March, remains subject to finalization.

“Pending these uses, we may invest the net proceeds from this offering in short-term, interest-bearing instruments,” Rocket Lab said in a statement, noting it will retain broad discretion over how the money is allocated.

For investors, the move underscores the balance between growth ambitions and shareholder dilution—a common trade-off in high-growth industries like aerospace.