After breaking out above the all-important $50 level and running to fresh all-time highs of $55.17, Rocket Lab USA (NASDAQ: RKLB) was hit with sharp selling pressure last week. The drop occurred after a $750 million At-the-Market (ATM) offering was announced. The announcement spooked investors; now, one week later, the stock is down almost 8%.
The failed breakout above $50 may have dampened near-term optimism for many. But does this pullback actually undermine the bullish thesis, or could the offering be a sign of long-term strength? Let’s break it down.
