Cathie Wood Defends ARK's $80 Million SpaceX Bet as Shares Sit 47% Below Peak
Updated
Updated · Fox Business · Jul 22
Cathie Wood Defends ARK's $80 Million SpaceX Bet as Shares Sit 47% Below Peak
1 articles · Updated · Fox Business · Jul 22
Summary
Cathie Wood said ARK Invest is standing by its $80 million SpaceX position, calling the company a potential "most important" business in global history despite the stock's sharp retreat.
At about $123.50 before Wednesday's open, SpaceX shares were down roughly 47% from a $225 high, with a $116 billion share unlock adding pressure after the company lost about $1.4 trillion in market value.
Wood argued SpaceX's appeal goes beyond rockets, pointing to its launch business and Starlink-style global communications network as a telecom model that can bypass traditional country-by-country market entry.
The defense extends Wood's earlier view that SpaceX will be volatile but benefits from Elon Musk's vertical integration across companies including Tesla, xAI and Neuralink; Musk last week also warned investors against shorting the stock.
With a $1.75 trillion IPO valuation looming, is SpaceX a historic investment or the market's most overvalued bubble?
Can SpaceX's profitable Starlink business fund its costly AI ambitions before investor patience runs out?
SpaceX Shares Sink Below IPO Price—ARK Invest Bets Big Despite 33% Drop and Lockup Risks
Overview
SpaceX’s stock has faced a sharp decline since its June 2026 IPO, dropping below its initial price as investors worry about high valuations and the impact of upcoming lockup expirations. Despite these challenges, ARK Invest, led by Cathie Wood, has responded by aggressively buying more SpaceX shares, viewing the dip as a long-term opportunity. This strategy reflects ARK’s belief in SpaceX’s future potential, even as the market remains cautious due to operational setbacks and financial risks. The situation highlights the tension between short-term market pressures and high-conviction, long-term investment approaches.