Key Takeaways
- Cathie Wood’s ARK Investment Management acquired 124,543 shares of SpaceX valued at $14.1 million on Monday across four different ETFs
- Shares of SpaceX have plummeted from their June peak of $225.64 down to $113.50, eliminating more than $1.2 trillion in market capitalization
- The investment firm simultaneously added 27,864 Tesla shares valued at roughly $8.6 million amid the broader market weakness
- The company’s inaugural public earnings announcement is scheduled for August 4, followed by a potential flood of 911.5 million shares hitting the market on August 6 when the first lockup period expires
- Despite ongoing price declines, Wood characterized Starship’s recent ocean landing as potentially “game-changing” technology
Monday brought another challenging session for SpaceX, with the stock declining an additional 1.4% to close at $113.50. The share price now sits beneath its initial public offering level and represents the 13th downward move across the past 16 trading days.
Since reaching its zenith at $225.64 in June, the company has witnessed over $1.2 trillion in market capitalization vanish. To put this decline in perspective, that amount equals Tesla’s entire current valuation.
Space Exploration Technologies Corp., SPCX
Wood’s Firm Sees Opportunity in the Decline
ARK Investment Management, led by Cathie Wood, took advantage of Monday’s price weakness. The investment manager snapped up 124,543 shares of SpaceX for approximately $14.1 million, distributing the purchases across ARK Innovation, ARK Autonomous Technology and Robotics, ARK Next Generation Internet, and ARK Space and Defense Innovation ETFs.
The firm simultaneously expanded its Tesla position, acquiring a total of 27,864 shares valued at about $8.6 million through a pair of its exchange-traded funds.
Balancing these acquisitions, ARK liquidated positions in other holdings. The firm dumped 9,407 shares of Deere and Co, representing $5.9 million in value. Additionally, ARK sold 72,497 shares in 10X Genomics, totaling approximately $3.4 million.
Wood maintained an optimistic outlook even as prices continued falling. Following the most recent Starship mission, she commented on X: “Bull markets do not end in this way. They end when everyone believes the sky is the limit.”
Technical Achievements Fail to Boost Share Price
SpaceX’s 13th Starship test mission successfully accomplished the majority of its planned milestones. The flight demonstrated deployment of operational Starlink V3 satellites, executed a Raptor engine restart while in orbit, and achieved a controlled ocean landing while maintaining telemetry transmission throughout the descent.
Investment bank Raymond James maintained its Strong Buy recommendation on SpaceX with an $800 price target, implying potential gains exceeding 600% from present levels. Analysts at the firm described the test as an incremental advancement toward achieving full spacecraft reusability.
The mission’s primary shortcoming involved the Super Heavy booster, which was unable to execute a successful landing sequence.
Upcoming Catalysts and Long-Term Outlook
The company faces a pivotal moment on August 4 when it will publish its maiden earnings report as a publicly traded entity. Just 48 hours afterward, as many as 911.5 million previously restricted shares could become available for trading, representing the initial wave of post-IPO lockup releases. Elon Musk and select other company insiders face extended holding periods beyond this date.
Veteran investor Ron Baron revealed that SpaceX represented $25 billion of his firm’s total $70 billion in managed assets as of June. Baron’s firm has deployed $2 billion through 27 separate transactions beginning in 2017, supplemented by an additional $1 billion commitment during the IPO. Baron projects SpaceX could ultimately achieve a valuation ranging from $20 trillion to $40 trillion within the next decade to fifteen years.
Ross Gerber of Gerber Kawasaki disclosed his firm passed on participating in the SpaceX public offering, though he indicated the ongoing price decline might eventually create “a bargain” opportunity within the coming twelve months.
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