Cathie Wood Buys $20M in SpaceX Stock as Post-IPO Selloff Deepens

Cathie Wood’s ARK Invest continued to buy SpaceX shares, investing more than $20 million as the aerospace company's stock remained under heavy pressure following its recent IPO. The latest purchases highlight Wood’s long-term conviction and suggest a classic "buy the dip" strategy despite the stock’s sharp decline.

According to ARK Invest’s daily trading disclosure, the firm's flagship ARK Innovation ETF (ARKK) acquired 97,664 SpaceX shares, valued at approximately $11.7 million based on Monday’s closing price of $119.85. The ARK Autonomous Technology & Robotics ETF (ARKQ) added 31,807 shares worth about $3.81 million, while the ARK Next Generation Internet ETF (ARKW) purchased 28,153 shares valued at roughly $3.37 million. The ARK Space Exploration & Innovation ETF (ARKX) also bought 13,010 shares, representing an investment of nearly $1.56 million.

Combined, the four ETFs purchased around $20.45 million worth of SpaceX stock. Shares closed down 3.34% on Monday before recovering 1.88% to $122.10 in premarket trading on Tuesday.

SpaceX stock has struggled since its public debut, falling more than 45% from recent highs and dropping below its IPO price of $135. The decline has erased nearly $1 trillion in market capitalization, leaving many public investors with significant losses.

The prolonged selloff has also fueled gains for bearish traders. According to S3 Partners, short sellers have generated roughly $4 billion in paper profits over the past month. Around 30% of the company’s free-floating shares, or approximately 192 million shares, are reportedly held in short positions, reflecting continued skepticism over the stock’s near-term outlook.

Investor sentiment weakened further after SpaceX’s first post-IPO Starship mission was automatically aborted because of engine issues, adding to selling pressure. Markets are also watching the upcoming August 19 lockup expiration, when roughly 900 million additional shares are expected to become eligible for trading, potentially increasing supply and volatility in SpaceX stock.