Cathie Wood's Ark Bought $27 Million of SpaceX Stock. Here's Whether You Should Follow Her Lead.
Ark Invest, led by Cathie Wood, has increased its stake in SpaceX by purchasing $27 million worth of shares. The firm views SpaceX as a strategic partner to its significant Tesla investment, betting on the future of autonomous technology.
Why it matters
This move highlights the growing institutional interest in private space exploration and the interconnected nature of Elon Musk's business ventures.
Even after a harsh and sudden correction, Space Exploration Technologies ( SPCX +0.50% ) stock remains above its IPO price of $135. Cathie Wood, the CEO of Ark Invest, has used recent weakness in shares to add to her firm's position in SpaceX.
According to reports, Ark Invest bought 200,000 shares of the popular space stock across multiple ETFs. The combined purchases totaled around $27 million.
SpaceX is now the firm's second-largest holding, with a position value of roughly $680 million. Ark Invest's largest holding is another Musk-led business, Tesla ( TSLA +4.90% ) . That holding is worth nearly $1 billion.
Why is Wood so bullish on Elon Musk's businesses ? What prompted her to increase her position in SpaceX? The answer is simpler than you might think.
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