Why Rocket Lab Stock Plummeted This Week
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Shares of Rocket Lab (RKLB) fell 10% this week following the announcement of a $750 million equity offering, leading to concerns over shareholder dilution. Despite this, the company's market cap of $23 billion suggests the dilution impact is around 3%. The stock has surged sixfold in the past year, making this a strategic time to raise funds for expansion, including the launch of its Neutron rocket. However, with a high price-to-sales ratio of 48, investors are advised to be cautious before making significant investments.
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