Rocket Lab (RKLB) soared to a new all-time high of $123.94 on May 11, capping a powerful rally fueled by a blockbuster first-quarter earnings report and growing optimism around its Neutron rocket. However, Cathie Wood’s ARK Invest has been trimming its stake, raising questions about whether the momentum trade is getting crowded.
The company reported Q1 revenue of $200.3 million, up 63.5% year-over-year and well above the $192 million consensus. While GAAP net loss was $0.09 per share, narrowing adjusted EBITDA losses highlight a clear path to profitability. The star of the show was a record $2.2 billion backlog, providing multi-year revenue visibility, and the shift toward high-margin Space Systems, which now account for nearly 70% of the top line.
CEO Peter Beck emphasized "super healthy demand" and the strategic de-risking of the supply chain through vertical integration. The Neutron rocket remains the key catalyst, aiming to compete directly with SpaceX in the mega-constellation launch market, though its first flight was pushed to Q4 2026 following a tank failure early in the year.
ARK Invest sold roughly 163,700 shares in the days leading up to the all-time high, booking about $13.6 million in profits. This fits ARK’s pattern of rotating from crowded winners into early-stage disruptors like Intellia Therapeutics. Wood’s sale doesn’t necessarily signal a bearish view, but it does remind investors that Rocket Lab is now trading well above the average analyst price target of $94.96. Dilution risk also exists after the company set up a $1 billion equity distribution agreement in March.
Still, the bull case is supported by a $816 million Space Development Agency contract and a manifest of more than 70 missions. For now, the stock remains a high-conviction play on the “Space 2.0” economy, though its margin for error is thinner at these levels.
