Rocket Lab Stock Is Spiraling Lower: What's Going On?
Portfolio Pulse from Adam Eckert
Rocket Lab USA Inc (RKLB) shares dropped after announcing a private offering to raise $275 million through convertible senior notes due 2029. The proceeds will fund capped call transactions and repay part of its equipment financing. This follows preliminary Q4 results with expected revenues of $59-$61 million, gross margins of 24.8%-26.8%, and a net loss of $49-$52.5 million. The company's stock fell 2.61% and an additional 12.01% after hours.
January 31, 2024 | 9:54 pm
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Rocket Lab's stock price fell following the announcement of a convertible note offering and preliminary Q4 financial results indicating a net loss.
The announcement of the convertible note offering and the preliminary Q4 financial results showing a net loss are likely to raise concerns about the company's debt levels and profitability, leading to a negative short-term impact on the stock price.
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