"Wood Sister" continues to increase holdings in SpaceX, buying about $14 million

Source: Global Markets Report

Ark Invest, led by Cathie Wood, acquired SpaceX shares on Wednesday through several ETFs, including ARK Innovation ETF (ARKK), ARK Autonomous Technology and Robotics ETF (BARKQ), ARK Next Generation Internet ETF (ARKW), and ARK Space Exploration & Innovation ETF (ARKX).

The total number of shares purchased was 121,384, amounting to an investment of approximately $14 million based on SpaceX's closing price of $115.26 that day.

A 25-year study by First Trust shows that most US stock IPOs perform weakly in the long run, with 59% of companies reporting negative returns within two years of listing and a median return decline of 10.5%. For SpaceX, this study highlights the challenge of converting strong market enthusiasm into long-term financial performance. Although the company has growth drivers such as Starlink and Launch Services, investors will still focus on whether it can justify its premium valuation through sustained execution.

Meanwhile, SpaceX CEO Elon Musk warned that investors holding large short positions in the stock have an “extremely low” probability of long-term success. This statement, widely reported by the media, was amplified after the stock's increased short interest following a decline from its IPO peak.

These comments echo Musk's longstanding criticism of short-sellers during his tenure at Tesla, during which he repeatedly predicted losses for bearish investors. On Tuesday, SpaceX shares rose more than 6%, having previously fallen to post-listing lows.

Despite the significant decline in SpaceX shares from their post-listing highs, Wood reiterated her bullish outlook on the stock, stating that it has the potential to become “the most important company in the history of the world,” and emphasized the long-term growth potential demonstrated through Starlink. Recently, Wood's funds have been buying up large amounts of SpaceX stock, with purchases worth $20.5 million on Monday alone.