ARK Invest Buys $22.8 Million of SpaceX Stock Amid Sharp Sell-Off

Cathie Wood's ARK Invest purchased $22.8 million worth of Space Exploration Technologies Corp. (SPCX) stock on August 5, capitalizing on a sharp sell-off that brought the shares near their 52-week low. The move signals a high-conviction, contrarian bet on the aerospace and satellite company despite significant market volatility.

The Contrarian Purchase

ARK Invest acquired 181,830 shares of SpaceX on a day the stock fell -13.61% to close at $108.27, just above its 52-week low of $104.83, according to market data. The purchase was reportedly funded by trimming positions in other high-profile growth stocks, including Roblox ($17.3M), Palantir ($11.4M), and Shopify ($11M).

This allocation suggests a deliberate strategy to increase exposure to SpaceX during a period of price weakness, rather than a routine portfolio rebalancing. The stock has experienced a significant downturn, falling -32.5% over the past month and -52% from its 52-week high.

Strong Fundamentals vs. Market Sentiment

The sell-off occurred despite SpaceX reporting strong second-quarter financial results on August 4. Key figures from the report include:

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• Q2 Revenue: $7.8 billion, an increase of +92% year-over-year.
• Q2 EBITDA: $3.5 billion, a rise of +192% year-over-year.

Furthermore, the company accelerated its timeline for reaching $1 trillion in annual revenue to 2030, a year earlier than previously projected. The updated forecast is partly driven by plans to monetize AI compute capabilities, according to the company's statements.

A Wide Divide on Valuation

Wall Street analysts remain bullish on SpaceX, but price targets show a wide dispersion, highlighting uncertainty in valuing its diverse business lines. The disparity reflects the challenge of pricing a company involved in rocket launches, satellite internet, and a nascent AI compute business.

Analyst price targets for SpaceX shares range from $190 (Stifel) to an outlier high of $800 (Raymond James). Even the most conservative of these targets suggests a significant upside from the stock's recent price. For investors, SpaceX is the largest holding in the ARK Space & Defense Innovation ETF (ARKX), accounting for 7.7% of the fund's assets.