Rocket Lab USA, Inc. (RKLB) experienced a significant 5.04% decline in its stock price during Thursday's trading session. This plummet comes amid heightened uncertainty surrounding the company's upcoming earnings report and intensifying competition within the space industry.

According to options data, the market is anticipating a potential 12.3% move in Rocket Lab's share price following the release of its earnings results. This volatility reflects the uncertainty surrounding the company's financial performance and future prospects, which could be a contributing factor to the recent stock price drop.

Additionally, the space industry has witnessed a surge in activity, with companies like Intuitive Machines and Firefly Aerospace making strides in their lunar exploration efforts. Rocket Lab faces stiff competition as these companies secure contracts and demonstrate their technological capabilities. The increasing competition could be weighing on investor sentiment, leading to a reevaluation of Rocket Lab's position within the industry.