Cathie Wood Buys $18M SpaceX Stock As Price Hits All-time Low, Dumps Robinhood

Cathie Wood’s ARK Invest increased its exposure to Space Exploration Technologies Corp. (NASDAQ: SPCX) on Friday, July 17. It purchased nearly $18.3 million worth of shares after the stock tumbled to a new post-IPO low. Meanwhile the investment firm also sold off some of its shares in Robinhood Markets on the same trading day.

Cathie Wood Makes Bullish Moves On SpaceX Stock

In total, Cathie Wood’s ARK purchased 147,623 shares of SpaceX across four of its actively-managed ETFs, according to the firm’s daily trading report. The SpaceX purchases totalled around $18.3 million based on the closing price of $123.99.

The flagship ARK Innovation ETF (ARKK) made the biggest purchase, with 95,129 shares valued at approximately $11.8 million. The ARK Autonomous Technology & Robotics ETF (ARKQ) bought in $3.78 million worth of 30,464 shares and the ARK Space Exploration & Innovation ETF (ARKX) took up 12,611 shares valued at nearly $1.56 million. The ARK Next Generation Internet ETF (ARKW) also purchased 9,419 shares, valued at approximately $1.17 million.

The buying came as SpaceX shares closed at $123.99, down 5.43% on the day after falling as low as $122.12. The stock is down about 35% from the $135 IPO price, and has weakened since it went public due to lagging interest.

On the other hand, ARK sold off its holdings in Robinhood, selling 20,089 shares via ARKW 5,913 shares from ARKK. The selloff came as Robinhood’s stock closed at $99.96 on Friday with a 5.72% fall.

What’s Next For SPCX Stock?

With the Super Heavy booster’s at least two Raptor engines failing to ignite during a series of pre-flight tests, SpaceX canceled its Starship Flight 13 launch minutes before liftoff, ratcheting up selling pressure. Elon Musk later claimed that the engines would be replaced, and the company rescheduled the mission for July 20 at 6:45 p.m. ET.

Market observers reacted on a mixed basis over the SpaceX stock drop as the company is seeing a sharp decline in its share prices. Cognitive scientist Gary Marcus said the most recent slide was an expression of increased doubts about Elon Musk’s performance. He added that another record low appeared more likely than a dramatic collapse.

Tesla investor Sawyer Merritt, however, said the selloff is an overreaction, because a few days of delay is not a significant operational setback for SpaceX and that investors have been overreacting to that short-term setback.

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