Cathie Wood's ARK Invest Accumulates Rocket Lab Shares Amid Stock Decline
ARK Invest, led by Cathie Wood, has been accumulating shares of Rocket Lab (RKLB) as the stock trades at less than half its record high. The firm purchased nearly 1.3 million shares in three waves between late August and early October for over $85 million. ARK's total stake now stands at around 3.2 million shares, valued at approximately $220 million. ARK analysts argue that Rocket Lab is well-positioned to benefit from a potential launch shortage if SpaceX retires its Falcon 9 rocket by the end of the decade and scales up Starship production. The company's Neutron rocket aims to fill this gap but has yet to make its first flight. Despite strong customer demand, with over $2.36 billion in backlog as of June 30, Rocket Lab faces uncertainty around when it can begin launching Neutron missions. Rocket Lab is burning through cash at an accelerating rate and plans for a larger EBITDA loss this quarter compared to the previous one. However, its strong balance sheet with $2.1 billion in cash provides some financial cushion.
Tickers: $RKLB
Topics: ARK Invest Rocket Lab space industry stock purchases