Cathie Wood’s ARK Invest increased its stake in Space Exploration Technologies Corp. (NASDAQ: SPCX) while adding exposure to Solana, reinforcing its conviction in disruptive technologies despite recent market weakness. The moves come just days before SpaceX reports its first earnings as a public company and faces a major lock-up expiration.
Source: Cointelegraph’s X Post
Cathie Wood Bets Bigger on SpaceX and Solana
According to ARK Invest’s July 27 trade disclosure, the firm purchased 124,543 SPCX shares worth about $14.1 million across four actively managed ETFs. It also acquired 4,799 shares of the 3iQ Solana Staking ETF (SOLQ.U) valued near $30,000, while trimming positions in Robinhood Markets (NASDAQ: HOOD) and Solana treasury company Solmate.
The latest purchases underline ARK’s continued focus on high-growth sectors. Since SpaceX’s June listing, the firm has invested more than $475 million in the stock without selling any shares. Wood continues to treat recent weakness as a buying opportunity rather than a signal to reduce exposure.
Also Read: SpaceX Stock Drops Below IPO Price Ahead of Major Share Unlock
SpaceX Faces Critical August Test
SPCX has been trading at about $115, still below its IPO value of $135 and far below the highest level it reached after going public, which is $225.64, a whopping 49% decline from that peak.
But according to ARK’s internal valuation methodology, SpaceX may be worth between $2.5 and $3.1 trillion within a decade from now.
The attention from investors will center around two forthcoming catalysts. The SpaceX company enters the spotlight by releasing its first quarterly earnings results as a publicly traded firm on August 4. In only two trading days thereafter, the IPO lock-up period expires, and nearly a billion shares become available for sale.
SpaceX AI Business Fuels $300 Price Target
Even amid the approaching end of the lock-up period and heightened volatility, there is positivity on the street. According to Morgan Stanley analyst Adam Jonas, the stock will hold steady at $300 since a drop below $100 means that the market does not see any value in SpaceX’s artificial intelligence unit.
The firm is now expanding its vision beyond just rockets and satellites to include AI. The firm currently operates two data centers dedicated to AI under the name Colossus and has plans of setting up a cloud AI network around orbit. The firm estimates the total addressable market to be worth $28.5 trillion with AI products at $26.5 trillion.
What Happens Next?
Investors would be keeping their eyes on SpaceX’s earnings to get any indications of profitability and growth in their AI and satellite businesses.
Following this, all eyes would be on the lockup expiry date to know if the early-stage investors start selling off their stocks. ARK’s continuous purchase of shares along with its investments in Solana suggests that Cathie Wood sees some volatility.
Also Read: SpaceX Stock Surges Into Focus as Alphabet Reveals $94.1 Billion Investment
