ARK Invest chief defends bullish stance on SpaceX despite share price decline
Cathie Wood said SpaceX could become a pivotal global company even as its stock has fallen and a large share unlock approaches.
ARK Invest CEO Cathie Wood reiterated her confidence in SpaceX during an interview on "Mornings with Maria," saying the aerospace and satellite network firm could become "the most important company in global history." Wood noted that ARK Invest allocated $80 million to the position after SpaceX’s public debut, and she remains optimistic despite the stock trading around $123.50 per share, roughly 47% below its peak of $225.
"We're talking about not only really exploring a new world — the universe — in terms of its launch capabilities and helping others to do so as well, but also a global communications network. Really, think telecom, that's been a very local business. In fact, the way to break into countries historically was to buy the telecommunications companies, no longer," Wood said.
The decline has erased about $1.4 trillion in market value, moving SpaceX to eighth place by market capitalization, behind Meta for the first time since its debut. Wood previously described the stock as likely to be volatile but praised founder Elon Musk’s ability to integrate his various enterprises. Musk recently warned short sellers, stating that firms maintaining significant short positions in SpaceX face low survival probabilities.