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Cathie Wood Buys SpaceX Dip Amidst Retail Skepticism
21 Jul
Summary
- SPCX stock fell below $120 but saw a pre-market rebound.
- Ark Invest purchased over 170,000 SpaceX shares.
- Retail traders await further price drops before buying more.
SpaceX (SPCX) stock saw a modest recovery in pre-market trading on Tuesday, following a previous session's record low below $120. This uptick was spurred by Ark Invest, led by Cathie Wood, reportedly acquiring more than 170,000 shares across various funds, including the ARK Innovation ETF. Ark Invest has consistently bought SpaceX shares since its initial public offering and has not sold any.
Despite this significant institutional investment, retail sentiment on Stocktwits indicates a cautious approach. A substantial portion of retail traders polled expressed they would only consider purchasing SPCX shares if the price fell below $80 or $100, with only a small percentage willing to buy at current levels. Some traders cited expectations that SpaceX might not achieve cash-flow positivity until 2035, influencing their reluctance.
Since its public debut, SpaceX stock has struggled, experiencing more negative trading days than positive ones. It has declined approximately 47% from its peak of $225.64 shortly after its June 12 listing, and is now trading below its IPO price of $135.
