ARK Invest Buys $32M in SpaceX Shares After 16% Plunge

What happened: ARK Invest purchased 210,121 shares of SpaceX (Nasdaq: SPCX) for approximately $32.5 million after the stock fell 16.43% to $154.60, erasing most of its post-IPO gains since debuting on June 12. The buy was spread across ARK's ETFs, with ARKK acquiring the largest tranche. ARK funded the purchase partly by selling Roku and AMD shares, unloading about $163 million in stock over the week. ARK's initial IPO-day buy was over $500 million in SPCX shares.

Why it matters: ARK doubling down on SpaceX after a sharp decline underscores its conviction in Elon Musk's vision, particularly SpaceX's pivot toward AI compute via satellite. However, this concentration risk—especially at the expense of other high-growth tech names—has drawn criticism. The move also raises questions about whether SpaceX's ambitious revenue projections can justify its post-IPO valuation, especially amid broader tech sector weakness.

Source: The Block