Ark Invest Trims Alphabet Position to Increase Stake in Rocket Lab
Ark Invest, led by CEO Cathie Wood, has shifted capital from Alphabet (GOOGL) into Rocket Lab (RKLB). Despite a delay in the Neutron rocket's first launch until 2027, Ark purchased an additional $9.3 million of Rocket Lab shares following a previous $25.1 million investment. This move highlights a strategic pivot from established AI profitability toward high-growth, speculative space infrastructure. Alphabet continues to show strong fundamentals, with Google Cloud revenue growing 82% year-over-year and search advertising seeing increased paid clicks. However, Ark's thesis for Rocket Lab rests on the potential shortage of U.S. launch capacity if SpaceX shifts its focus toward Starship-supported orbital AI data centers. While Rocket Lab faces technical delays, it maintains a $2.36 billion backlog and significant revenue from its space systems segment.