Despite Positive Developments, Rocket Lab Stock Is a High-Risk Name

Rocket Lab (RKLB) continues to make impressive strides in its dealings with the federal government, most recently becoming well-positioned to obtain a new, major deal from the U.S. Space Force. On May 7, the company also reported strong first-quarter results.

Still, some factors combine to make RKLB stock risky and unappealing at this point. These factors include its extremely high valuation, technical issues the company has experienced with a medium-sized rocket in development, and recent stock sales from members of management.