No, Rocket Lab Stock Does Not Defy Gravity (Technical Analysis)

Dec. 04, 2024 5:12 PM ETRocket Lab USA, Inc. (RKLB) Stock31 Comments
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Bay Area Ideas
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(11min)

Summary

  • Rocket Lab stock has surged recently but is likely to experience near-term weakness due to bearish technical indicators and stretched valuations.
  • Technical analysis shows distant support levels and bearish patterns, suggesting a pullback is imminent, though long-term prospects remain strong.
  • Fundamentals indicate strong revenue growth but widening losses, with the P/B ratio suggesting overvaluation despite promising company developments.
  • I rate Rocket Lab as a hold, recommending investors wait for a better entry point once the current correction stabilizes.

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Thesis

Rocket Lab USA, Inc. (NASDAQ:RKLB) stock has been on a tear lately, with the stock more than doubling in the past month. Some have referred to this surge as a 'rocket launch' but even rockets are

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Bay Area Ideas profile picture
767 Followers
I'm a technically-oriented Canadian investor with a focus on U.S. markets, particularly in tech and financials. I graduated with a Bachelor of Commerce Degree with Distinction, with a major in Finance. I'm also a proud lifetime member of the Beta Gamma Sigma International Business Honour Society.My motto is John Pierpont Morgan's phrase: 'First-Class Business In A First-Class Way.' I strive to be a premier provider of technical analysis articles on Seeking Alpha by sharing high-quality in-depth pieces with our community of readers.My core values are: Excellence, Integrity, Transparency, & Respect. I always, to the best of my ability, hold true to these values which I believe are key for long-term success.Lastly, I would like to invite all of my readers to leave their constructive criticism and feedback in the comments section so that I can further enhance the quality of my work moving forward. Thank you and best wishes on your investing journeys.

Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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