Cathie Wood’s Optimism for SpaceX Amid Stock Decline

ARK Invest’s Cathie Wood is standing firm on her belief that SpaceX could emerge as “the most important company in the history of the world.” This statement comes in light of a recent downturn in SpaceX’s stock price and a looming $116 billion in equity unlocks.

During an interview on “Mornings with Maria,” Wood expressed her continued confidence in SpaceX, especially after ARK Invest’s allocation of $80 million to the company following its public listing.

“It’s common for stocks to fluctuate after a peak,” Wood pointed out, noting that the decline doesn’t distract from the potential she sees in SpaceX. “We believe it could revolutionize various fields, including space exploration and global communications.”

She emphasized that the company isn’t just changing the game for launching objects into space, but is also creating a network for global communications. This shift is significant because telecommunications has been traditionally focused on local markets, and SpaceX’s approach changes that perspective.

As of Wednesday morning, SpaceX shares were hovering around $123.50 each, representing a steep decline of approximately 47% from their peak of $225. This drop has led to a nearly $1.4 trillion decrease in market capitalization, placing SpaceX in eighth position behind Meta for the first time since it went public.

In earlier comments made to Bloomberg, Wood acknowledged that she anticipated volatility for SpaceX but continued to commend the company’s founder, Elon Musk, for his remarkable ability to integrate various ventures, including Tesla, xAI, and Neuralink.

Musk recently cautioned investors against shorting SpaceX stock, stating, “The chances of survival for companies with significant short positions in SpaceX are quite low.”