Cathie Wood bought SpaceX shares during a dip ahead of a new Starship rocket test

ARK Invest funds, managed by Cathie Wood, purchased nearly $17 million worth of SpaceX shares following several days of declining stock prices. The purchase took place on the eve of another test launch of the reusable Starship rocket, which investors hope will send a positive signal for the stock, according to Barron's. SpaceX shares were down about 3% during trading on July 16.

Four funds managed by investor Cathie Wood, including the flagship ARK Innovation ETF, purchased approximately 123,000 shares of SpaceX on July 15 for a total of nearly $17 million, according to Barron's. SpaceX ranks sixth among the ARK Innovation ETF’s largest holdings, accounting for about 4.4% of its portfolio, according to data on the company’s website.

During trading on Thursday, July 16, SpaceX shares fell for the fourth consecutive session and the eighth out of the last nine trading days, according to Barron’s. The space company’s shares rose 1.8% at the open but then began to fall, hitting a low of $130.74, down 3.3%. For the second day in a row, the stock is trading below its IPO price of $135 and may close below that level for the first time.

According to Barron’s, the stock is under pressure due to the company’s high valuation and expectations of an increase in the supply of shares following the release of its second-quarter earnings report, which is expected in early August. By that time, the lock-up period on approximately 20% of SpaceX’s shares will have expired. Although SpaceX’s IPO was the largest in U.S. history, the company listed less than 5% of its shares on the stock exchange, causing investors to compete for the limited supply of shares, Reuters reports.

“At current levels, investing in these stocks is justified, at least from a short-term trading perspective,” Jay Hatfield, CEO of Infrastructure Capital Advisors, told Reuters. At the same time, Hatfield noted that the fund does not intend to increase its investment in SpaceX until the lock-up period ends. SpaceX shares are currently trading at about 49 times projected revenue for 2026, Reuters notes. By comparison, shares of Tesla, another company owned by Elon Musk, are trading at a multiple of about 15 times annual revenue.

ARK made the purchases ahead of the 13th Starship test launch, which is scheduled for the evening of July 16. During the mission, the rocket’s upper stage is set to deploy 20 Starlink V3 satellites into orbit, then reignite a single Raptor engine in space and perform a controlled splashdown in the Indian Ocean. The successful deployment of Starship could significantly reduce the cost of space launches and increase their payload capacity. This is one of the key factors that could support the company’s long-term valuation and open up new business opportunities, including the deployment of orbital data centers for AI, Barron’s noted.

Analysts estimate the average target price for SpaceX shares at $240.7, which represents a 77% upside potential relative to the closing price on July 15. According to MarketWatch, of the 36 analysts covering SpaceX stock, 28 recommend buying the company’s shares, six advise holding them in a portfolio, and two recommend selling.

This article was AI-translated and verified by a human editor