Cathie Wood says Ark Invest is buying SpaceX stock despite a steep sell‑off

Space Exploration Technologies Corp. (NASDAQ: SPCX) fell to a fresh all‑time low on July 28, sinking more than 20% below its IPO price, while ARK Invest’s founder Cathie Wood announced that her firm is still buying the stock. The contrast between a plunging market price and a firm‑wide buying spree creates a tension that investors cannot ignore.

Wood explained that the market has not yet priced in SpaceX’s strategic advantage stemming from the Starship program. The recent successful splashdown, which left the heat shield largely intact, demonstrates a step toward full reusability. Brett Winton, ARK’s chief futurist, estimates that mastering Starship could drive launch‑costs down from roughly $570 per kilogram to about $100 per kilogram. Such a cost reduction would dramatically broaden the addressable market for satellite constellations, lunar payloads, and even point‑to‑point space travel.

The financial implications are equally striking. Winton projects that achieving Starship reusability this year could triple SpaceX’s 2031 revenue forecast and increase its 2036 outlook six‑ to seven‑fold. Analysts at Morgan Stanley maintain a Buy rating with a 12‑month target of $300, implying a potential upside of nearly 180%. TipRanks’ consensus points to a $239 target, suggesting more than 120% upside. These forecasts hinge on the assumption that SpaceX will translate technical progress into commercial scale.

ARK’s continued accumulation—over 3.9 million shares valued at $420 million after the June 2026 IPO—illustrates a structural insight: private‑market purchases can lock in a lower cost basis before a public listing, positioning the firm to benefit from any post‑IPO rally. This strategy also signals confidence to other investors, potentially softening the “wall of worry” that Wood describes as atypical for the end of a bull market.

Why does this matter for the broader technology sector? Lower launch costs could accelerate the adoption of satellite‑based broadband, enable more frequent Earth‑observation missions, and reduce barriers for emerging space‑tech startups. Industries ranging from agriculture to finance rely increasingly on real‑time data delivered from orbit; a cheaper launch cadence translates into faster innovation cycles and more competitive pricing for end‑users.

Real‑world implications are already emerging. Companies such as Amazon’s Project Kuiper and OneWeb have announced plans to launch thousands of satellites within the next decade. If SpaceX can deliver at $100 per kilogram, those constellations become financially viable sooner, potentially reshaping global internet access and creating new revenue streams for telecom operators.

From a market‑behavior perspective, the episode underscores how sentiment can diverge from fundamentals. While the broader equity market reacts to short‑term price moves, investors like Wood focus on long‑term value creation driven by technology adoption and operational efficiencies. This divergence offers a case study in how thematic investing can outperform conventional momentum strategies during periods of heightened volatility.

In sum, the combination of a proven reusable launch system, aggressive cost targets, and a disciplined investment approach positions SpaceX as a pivotal player in the next wave of space‑driven automation and workflow transformation. For investors, the current price dip may represent a rare entry point into a company whose technology could underpin multiple downstream industries.