Cathie Wood’s $20 Million SpaceX Investment Turns Profitable in One Day
Cathie Wood’s $20 Million SpaceX Investment Turns Profitable in One Day
ARK Invest firm managed by Cathie Wood saw its assets rise 7.10% just one day after buying $20.45 million in SpaceX shares. The strategic purchase was made when the company’s stock was trading below its initial public offering price. With the price jumping to $128.37, the position is now profitable. According to published reports, four funds managed by the firm have bought a total of 170,634 SpaceX shares. The ARK Innovation ETF was the largest contributor to the investment, buying more than 97,000 shares. The price rebound comes after the company’s shares were under heavy selling pressure last week due to technical issues with its Starship spacecraft and the cancellation of a test flight. Katie Wood’s recent investments are part of a larger strategy that began when the company went public in June. Market data shows that ARK funds had invested more than $475 million in the aerospace giant as of early July. Although the current price is still about 5% below the IPO price of $135, Wall Street analysts remain bullish on the company’s future. Despite the recent growth, there are challenges, such as the expiration of the lockup period on August 19, which could increase supply pressure as about 900 million new shares enter the market. However, analysts at institutions such as Morgan Stanley have much higher price targets for the stock. These fluctuations occur while short traders have also made significant profits from SpaceX's price decline in recent months.
