ARK's Cathie Wood backs SpaceX with $80M as stock loses $1.4 trillion

ARK Invest Chief Executive Cathie Wood called SpaceX the most important company in history, backing the view with an $80 million post-IPO allocation as the stock has shed nearly $1.4 trillion in market value.

"SpaceX is the most important company in global history," Wood said in a statement, according to a Fox Business report. The endorsement from the high-profile fund manager comes as the Elon Musk-led rocket and satellite company trades about 45% below its post-IPO high.

SpaceX shares closed at $123.54 on Tuesday, down from the $135 IPO price on June 11. The stock hit an intraday high of $225.64 on June 16, briefly pushing the company's valuation past $2 trillion. It then fell for seven straight sessions through July 20, sliding 21% to close at $119. The stock bounced Tuesday, climbing as much as 7% to $128 after Macquarie analysts stood by their outperform rating, before closing at $123.54.

Short sellers have piled into the stock, with 206 million shares — 32% of the tradable float — now sold short, according to S3 Partners. That represents roughly $25 billion in bearish bets. The short count has climbed from about 40 million shares a month ago, as bears position ahead of two key catalysts: SpaceX's first earnings report as a public company on Aug. 4 and the lock-up expirations that follow.

The company generated $18.7 billion in revenue in 2025, up 33% year over year, but posted a net loss of $4.9 billion. Growth slowed to 15% in the first quarter of 2026. Even after the selloff, SpaceX trades at about 49 times expected revenue, down from close to 140 times in its first trading days but still well above Morningstar's pre-IPO fair value estimate of $780 billion.

Despite the losses, 27 of 28 analysts tracked by Investing.com rate the stock a buy, with price targets spanning from $62 to $800 — a $738 gap that reflects deep disagreement on valuation. Musk himself has said the company "will be worth more than Earth if we achieve our goals."

Wood's endorsement could provide a floor for the stock as it approaches its first earnings report. The $80 million allocation from ARK represents a bet that SpaceX's Starlink satellite network, reusable rocket technology and AI infrastructure business — acquired through the xAI merger in February — will deliver the growth needed to justify its valuation. Investors will watch the Aug. 4 earnings release for signs of a turnaround.

This article is for informational purposes only and does not constitute investment advice.