Recent data suggests that Rocket Lab USA (RKLB) could be the next big short squeeze. The space exploration company has garnered significant momentum over the past six months, surging more than 200%. This winning streak hasn’t subsided so far this week. Shares are still rising steadily, but as they do, short interest is also high. This suggests that RKLB stock could be in the throes of a massive short squeeze.
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Rocket Lab USA isn’t often discussed when the topic turns to likely short-squeeze candidates. But while it may not be a typical meme stock, this recent surge warrants a closer look, especially as the company reported many positive catalysts lately.
What’s Going On with Rocket Lab USA Stock?
After spending most of today rising, Rocket Lab appears to have lost some momentum. As of this writing, shares are up 3% after gains of almost 9%. Despite some recent volatility, though, Rocket Lab is still up 120% for the past three months and its upward path has been mostly steady.
Share prices may be high right now but so is short interest in RKLB. Data from market analysis platform Fintel shows that it currently accounts for 18% of the stock’s float, and it will take short sellers six days to cover their positions.
All this suggests that interest from short sellers is high, even as the stock continues to rise. Previously a penny stock, Rocket Lab hasn’t traded below the $5 mark since late June 2024. However, this type of fast growth with few catalysts suggests that a short squeeze has begun. And as always with short squeezes, it isn’t clear how long this growth can continue.
Is RKLB Stock a Buy, Sell, or Hold?
Turning to Wall Street, analysts have a Moderate Buy consensus rating on RKLB stock based on six Buys, three Holds, and zero Sells assigned in the past three months, as indicated by the graphic below. After a 175% rally over the past year, the average RKLB price target of $8.28 represents a -27.24% change from current levels.
The unpredictable nature of a short squeeze can make the more risk-averse investors nervous. And while space exploration has been described as “the next trillion dollar industry,” Rocket Labs USA remains a largely unproven company.
