Cathie Wood’s Ark Invest bought about $52.1 million of SpaceX stock, increasing its investment since June’s IPO to more than $475 million as the shares traded below their $135 offering price.
Summary
- Ark Invest bought $52.1 million worth of SpaceX shares as the stock fell below its IPO price.
- SpaceX is down nearly 42% from its post-IPO record low of $225.64.
- A strong bearish channel keeps support at $128–$130 and resistance at $133–$135 in focus.
According to the Ark Invest Tracker, Ark bought shares in its ARKK, ARKQ, ARKW, and ARKX exchange-traded funds during the week ending July 10. The purchases followed nearly $444 million in purchases during SpaceX’s June 12 market debut.
Wood’s latest move came as SpaceX lost its first IPO earnings. After opening at $150 and reaching $225.64 shortly after listing, the stock closed at $131.11 on Thursday, according to Yahoo Finance.
At that price, SpaceX fell nearly 42% from its record high and closed below its IPO price of $135 for the first time. Thursday and extended the stock’s five-session loss.
Ark’s acquisition reinforces its long-term belief
Ark’s repurchase shows that Wood treated the decline as an opportunity to increase his position. However, the investment firm did not provide a short-term price forecast related to its latest purchase.
The position also carries valuation and supply risks. According to Reuters, SpaceX trades at about 49 times earnings, compared to about 15 times for Tesla, while the company’s market value has fallen to about $1.8 trillion.
Selling pressure may increase when restrictions on employees and early investors begin to expire in August. Reuters reported that the initial issuance of the lockup would make 911.5 million shares available after SpaceX published its first earnings results, although open shareholders would not be required to sell.
Bearish traders have already profited from the pullback. Data from Ortex Technologies, cited by Reuters, showed that short sellers have amassed about $8.7 billion in paper profits since the IPO, with about 49% of the shares available for loans.
SpaceX stock remains stuck on the station
On the TradingView one-hour chart provided, SpaceX stock remains within a bearish channel that has formed with a series of highs and lows since early July. The recent candle closed near $131.07 after trading between $131.01 and $132.89.
Aroon readings on the chart show Aroon Down at 85.71%, compared to Aroon Up at 7.14%, indicating that sellers continue to control the short-term price structure. At the same time, the Average Directional Index reading of 31.22 shows that the current trend retains significant strength.
The channel floor places immediate support around $128 to $130. Based on the chart structure, a confirmed break below that area could expose $125, while the upper channel boundary creates the first resistance area between $133 and $135.
For a strong recovery, the chart shows that buyers will need to retest the ceiling of the channel before challenging $140. Until that explosion happens, Ark’s recent purchases provide an institutional vote of confidence but don’t reverse the stock’s technical framework.
