Key facts
- ARK Invest made a bullish bet on SpaceX stock, acquiring over $20 million in shares.
- The purchases were made across four ARK ETFs: ARKK, ARKQ, ARKW, and ARKX.
- SpaceX stock has fallen more than 45% since its initial public offering.
- Short sellers have accumulated approximately $4 billion in profits due to the stock's decline.
- An upcoming lockup expiration on August 19 could release an additional 900 million shares.
Cathie Wood's ARK Invest has made a significant bullish move by acquiring over $20 million worth of SpaceX shares, signaling a "buy the dip" strategy amidst the company's sharp post-IPO losses. The purchases were distributed across several ARK ETFs, including the ARK Innovation ETF (ARKK), ARK Autonomous Technology & Robotics ETF (ARKQ), ARK Next Generation Internet ETF (ARKW), and ARK Space Exploration & Innovation ETF (ARKX).
SpaceX stock has experienced a substantial decline, falling over 45% since its IPO and erasing significant market capitalization. This downturn has presented lucrative opportunities for short sellers, who have reportedly amassed approximately $4 billion in paper profits over the past month, with about 30% of the company's free-floating shares being shorted. The stock's struggles have been compounded by an automatic abort of its Starship vehicle's first trip due to engine issues, and an impending lockup expiration on August 19, which is expected to release an additional 900 million shares into trading.
Despite the current headwinds, ARK Invest's substantial purchase suggests a belief in SpaceX's long-term potential, even as bearish investors have capitalized on the recent price action.