As Space Exploration Technologies Corp. (NASDAQ: SPCX) shares fell to a new all-time low (ATL) on July 28, Cathie Wood – the founder, CEO, and Chief Investment Officer (CIO) of ARK Invest – has revealed why her investment management firm has kept buying SpaceX stock.
Wood stated that SpaceX stock price has not factored in that the company has a strong business edge through its Starship program. As such, she highlighted that the equity market is climbing a ‘wall of worry’, which is not typical at the end of bull markets.
“Starship’s successful splashdown was perhaps game-changing news for SpaceX; yet, the stock dropped further below its IPO price today. The equity market is climbing a “wall of worry”. Bull markets do not end in this way. They end when everyone believes the sky is the limit!” Wood noted.
The Wall Street investor echoed a similar view from Brett Winton, the chief futurist at Ark. Winton had argued that Friday’s successful Starship splashdown and its relatively unscathed heat shield would help SpaceX master reusability, thereby increasing the firm’s revenue over the years.
Furthermore, he believes that the reusability of Starship could help reduce the cost per launch from $570 per kg to $100 per kg.
“If SpaceX can master Starship reusability this year, that would increase our 2031 revenue and EBIT expectations for the company by roughly 3-fold and improve 2036 prospects by 6 to 7-fold,” Winton explained.
As a result, Ark Invest has been accumulating SpaceX stock through private market purchases, and after the June 2026 IPO (initial public offering). At press time, Ark Invest held more than 3,921,348 SPCX shares, valued at over $420 million.
SpaceX stock outlook
SpaceX stock price has already dropped over 20% below its IPO value, trading at $107.34 on Tuesday. Over the past 30 days, SPCX shares have plunged by nearly 35%, thereby hitting a new ATL.
Despite the notable sell-off, Wall Street analysts have maintained a Buy rating on the company. For instance, Adam Jonas, an analyst at Morgan Stanley (NYSE: MS), has reiterated a Buy rating and a 12-month price target of $300, which suggests a potential 179.49% upside.
Meanwhile, 30 analysts surveyed by TipRanks have set an average 12-month price target of $239.04, signaling a possible 120.05% upside. With such strong fundamentals, Wood defended Ark’s investment position in SpaceX.
