SpaceX Stock Decline and Cathie Wood’s Investments
Recent Performance
Space Exploration Technologies (SPCX) experienced a tough July, with a 31% stock decline, bringing its price down to around $108, significantly below its $135 IPO.
Support from Cathie Wood
Cathie Wood, founder of Ark Invest, has been a prominent supporter of SpaceX, touting its potential to become “the most important company in history.” In light of the dip, Wood has increased her investments, but retail investors might want to proceed with caution.
Ark Invest’s Purchasing Activity
Ark Invest’s ETFs purchased 229,651 shares of SpaceX on July 27 and 28, alongside 68,145 shares of Tesla, amounting to a total investment of $47.3 million in these Musk-led ventures. Notably, SpaceX is a leading holding in the ARK Innovation ETF (ARKK), which held $283 million in SpaceX stock as of July 31.
However, it’s essential to recognize that Wood’s investment record is mixed: while ARKK has lost 41% over the past five years, the S&P 500 has gained 70%.
Valuation Insights
SpaceX’s valuation at its IPO was $1.77 trillion, trading at around 95 times its projected 2025 sales of $18.7 billion—leading to questions about its value. With the insider lockup period expiring in tranches from August 2026 through December 2026, investors should brace for possible volatility as insiders may sell shares.
Current Market Overview
As of the latest update, SpaceX’s stock has seen an increase of 5.62%, now priced at $114.46. Key market data includes:
- Market Cap: $1.4 trillion
- Day’s Range: $104.83 – $114.92
- 52-week Range: $104.83 – $225.64
Conclusion
If Cathie Wood’s predictions hold true, current prices might be seen as undervalued. Conversely, more conservative estimates—like Morningstar’s fair value of $63 per share—suggest a need for caution. Awaiting upcoming earnings reports and monitoring the upcoming insider lockup expiry will be crucial in assessing the investment’s viability.
