Cathie Wood Bets Big on Rocket Lab Despite Delays

Cathie Wood's Ark Invest continued to invest in Rocket Lab, acquiring shares valued at approximately $25.1 million on September 22, 2026, and an additional $9.3 million on October 15, 2026. This occurred shortly after Rocket Lab announced on October 14, 2026, that its Neutron rocket's inaugural launch would be postponed until 2027. Concurrently, Ark Invest reduced its holdings in Alphabet.

Ark's investment approach balances Alphabet's established financial success with Rocket Lab's speculative, long-term growth prospects. The firm anticipates a potential shortage in U.S. launch capacity by 2030, creating opportunities for companies like Rocket Lab as SpaceX potentially shifts focus to its Starship program. Rocket Lab already boasts a substantial backlog of $2.36 billion as of the second quarter ending June 30, 2026, with its space systems segment being a primary revenue driver.

However, Rocket Lab's ambitious expansion hinges on the commercial viability of its Neutron rocket. Securing contracts, such as the one with Kepler Communications for satellites supporting on-orbit computing, is a positive sign, though these missions are scheduled for 2028 and beyond. The company has also raised $1.94 billion through share issuance to fund its acquisition of Iridium Communications, a move that dilutes existing shareholders. Rocket Lab's current valuation, trading at over 39 times trailing-12-month sales, presents a higher risk compared to Alphabet's more established profitability and clearer AI monetization.