Cathie Wood Just Bought $27 Million of SpaceX. Calling the Bottom or Catching a Falling Knife?

SpaceX's (NASDAQ:SPCX) blockbuster nationalist debut generated precisely the benignant of excitement investors expected from Elon Musk's latest venture. After pricing its IPO astatine $135 per stock and opening astatine $150, the banal concisely climbed to $225 arsenic request overwhelmed supply. That aboriginal enthusiasm has cooled. 

The premier abstraction banal closed yesterday astatine $148.30, beneath its first-day opening terms and 34% beneath its post-IPO high. The pullback has divided investors into 2 camps: those who spot a uncommon buying accidental and those who judge the valuation is yet catching up with reality. One of Wall Street's astir recognizable maturation investors has already made her choice.

Cathie Wood Is Doubling Down

According to ARK Invest's regular trading disclosures and money holdings, Cathie Wood purchased astir $27 cardinal worthy of SpaceX shares crossed 4 antithetic ARK ETFs. The determination instantly elevated SpaceX into the fourth-largest combined presumption crossed those funds, representing astir 4.5% of the portfolios' full value. At existent prices, ARK's involvement is valued astatine astir $165.6 million.

That isn't a casual trade. Wood built her estimation aft ARK Innovation ETF generated eye-popping returns during the pandemic-era exertion rally. Her show since past has been mixed, mostly due to the fact that galore of her investments people disruptive technologies that whitethorn instrumentality years to fulfill their potential. Her strategy has ever favored semipermanent innovation implicit short-term terms movements.

Act now: the expert who called NVIDIA successful 2010 conscionable named his apical 10 AI stocks — and SpaceX didn't marque the cut. Grab the names FREE today.

Let's besides retrieve that Wood has been 1 of Elon Musk's biggest supporters for years. Tesla (NASDAQ:TSLA) has agelong been 1 of ARK's signature investments, making a ample committedness to SpaceX little astonishing than it mightiness appear.

24/7 Wall St.

Most investors spot a 34% driblet arsenic a warning; Cathie Wood sees a occurrence sale. Inside the high-stakes gamble to ain the aboriginal of space. © 24/7 Wall St.