Rocket Lab USA Inc (RKLB)

Rocket Lab USA Inc (RKLB) stock dropped by 17.11% due to after making several announcements about preliminary results, which raised concerns over the need for additional funding through convertible notes and its potential impact on shareholder value.

• Announcements and Preliminary Results: Rocket Lab disclosed its first rocket launch of 2024 and a successful rocket recovery from a water landing. Additionally, the company provided preliminary results for its Q4 2023.
• Q4 Financial Snapshot: CEO Peter Beck estimated Rocket Lab's Q4 revenue to be between $59 million and $61 million, showing a 16% YoY increase but falling short of Wall Street's $66 million expectations. While gross profit margin improved to over 25%, the company still anticipates a net loss for the quarter, estimated at $49 million to $52.5 million, or approximately $0.10 per share, based on GAAP.
• Cash Needs and Debt Offering: To address its cash needs for operations and Neutron rocket development, Rocket Lab plans to privately offer convertible senior notes valued between $275 million and $316 million. This move would increase the company's debt load significantly and could potentially result in the issuance of up to 79 million new shares, diluting existing shareholders' ownership by around 16%.

Shares of American-New Zealand space company Rocket Lab USA (RKLB) plunged 7.54% on Tuesday after the company's 41st attempt at a rocket launch ended in failure this morning.

https://www.fool.com/investing/2023/09/19/why-rocket-lab-stock-got-rocked-today/

Rocket Lab's stock dropped 12.17% to $5.30 after the announcement today that they'd signed a contract with Leidos for four HASTE hypersonic test missions launching from Virginia's Rocket Lab Launch Complex 2 in 2024 and 2025, showcasing their cost-effective technology for hypersonic flight testing.

https://www.businesswire.com/news/home/20230912759977/en/