Rocket Lab USA Inc. (RKLB) stock dropped over 2% on September 1, 2026, after NASA awarded a major Mars communications contract worth up to $700 million to rival Blue Origin. The news marked Rocket Lab's ninth stock decline in ten trading days, but Cathie Wood's ARK Invest saw an opportunity, buying over 705,000 shares in two days. Retail investors expressed growing frustration over the company's setback and continued delays for its crucial Neutron rocket.
NASA Awards Mars Communications Deal to Blue Origin
NASA officially announced on September 1, 2026, that it selected Jeff Bezos' Blue Origin for a significant Mars communications contract. This deal has a maximum potential value of approximately $700 million. Blue Origin will design, develop, integrate, launch, and operate a high-performance Mars telecommunications orbiter. The orbiter is due by December 31, 2028, with network operations expected to begin by 2030.[tradingkey+4]
Rocket Lab had also competed for the lucrative contract. Its proposal centered on the "Explorer" platform, which included an optical communication system.Rocket Lab CEO Peter Beck had previously stated confidence in his company's bid and hoped for a quick decision from NASA.However, the space agency ultimately chose Blue Origin for the project.This decision is part of NASA's strategy to expand communication and navigation services beyond Earth and the Moon, supporting future Mars missions.[tradingkey+6]
The market reacted swiftly to the news. Rocket Lab's stock fell 2.16% on September 1, closing at $62.54 per share.This marked the second straight day of declines for RKLB and its ninth drop in the last ten trading sessions.Despite the loss, the direct financial impact on Rocket Lab's existing operations is considered limited.[tradingkey+4]
Cathie Wood Bets Big on Rocket Lab
As Rocket Lab's stock dipped, prominent investor Cathie Wood and her ARK Invest funds moved to acquire a substantial number of shares. On September 1, three of ARK's exchange-traded funds (ETFs) purchased a combined 504,799 shares of RKLB stock.This purchase was valued at approximately $31.6 million based on the day's closing price.[tradingkey+7]
This recent buying spree followed an earlier acquisition on August 31, when ARK Innovation ETF (ARKK) bought another 200,303 shares.In total, ARK Invest acquired 705,102 Rocket Lab shares over the two-day period, spending about $44.4 million.These transactions show Wood's continued belief in Rocket Lab's long-term potential, as she frequently "buys the dip" in companies she views as innovative growth stocks.[tradingkey+6]
Neutron Rocket Delays Fuel Investor Concerns
Beyond the NASA contract loss, Rocket Lab faces ongoing concerns regarding its next-generation Neutron rocket. The medium-lift, partially reusable launch vehicle has experienced multiple development delays since its announcement in 2021.In January 2026, a significant setback occurred when the first-stage fuel tank ruptured during a hydrostatic pressure test.This incident forced the company to adjust its production schedule for Neutron.[tradingkey+4]
In its second-quarter earnings report in August 2026, Rocket Lab stated that the first Neutron rocket is still scheduled for delivery to the Virginia launch site in the fourth quarter of this year.However, CEO Peter Beck admitted that the window for completing the maiden flight before the end of 2026 is "narrowing."After delivery, the rocket will still need to undergo extensive integrated testing, static fire tests, and wet dress rehearsals.These delays have contributed to retail traders' apprehension about Rocket Lab's prospects.[tradingkey+8]
Neutron is critical for Rocket Lab's expansion beyond its smaller Electron rocket. It aims to target the growing market for launching larger satellites and megaconstellations.A successful maiden flight is seen as a major catalyst for the company's stock price.[en+3]
Strong Backlog and Analyst Optimism Provide Context
Despite the recent setbacks, Rocket Lab's overall financial health shows strength. The company reported record second-quarter revenue of $234 million, a 62% increase year-over-year.Its order backlog also reached a record $2.36 billion by the end of June, representing a 137% increase year-over-year.Rocket Lab has over 90 launch missions booked.[tradingkey+9]
Furthermore, the company recently secured other significant contracts with NASA. In June and July 2026, NASA selected Rocket Lab to provide three Electron launches for two climate science missions, PolSIR and TSIS-2.These missions are part of NASA's $300 million Venture-Class Acquisition of Dedicated and Rideshare contract.This shows that Rocket Lab continues to be a valued partner for certain NASA projects, even if it missed out on the larger Mars communications deal.[govconwire+5]
Wall Street analysts generally maintain a positive outlook on Rocket Lab. According to data, 18 analysts have an average 12-month price target of approximately $112.65 for RKLB stock, suggesting an upside potential of about 80% from its current price.Berenberg initiated coverage on Rocket Lab with a "Buy" rating on September 2, setting a price target of $83.While some company executives sold shares in August for tax purposes, major institutional buying, including by ARK Invest, has countered this trend.The market remains focused on Neutron's progress as a key driver for Rocket Lab's future valuation and success.[tradingkey+8]
