Cathie Wood’s Ark Invest bought about $52.1 million worth of SpaceX shares, bringing its investment since its June IPO to more than $475 million as shares trade below their $135 offering price.
summary
- Ark Invest bought $52.1 million worth of SpaceX stock as the stock fell below its IPO price.
- SpaceX fell about 42% from its record high of $225.64 after the listing.
- A strong bearish channel keeps focus on the $128-130 support and $133-135 resistance.
According to the Ark Invest Tracker, Ark purchased shares through the exchange-traded funds ARKK, ARKQ, ARKW, and ARKX during the week ending July 10. The purchases followed nearly $444 million worth of purchases in SpaceX’s market debut on June 12.
Wood’s latest move came as SpaceX lost much of its early IPO gains. After opening at $150 and reaching $225.64 shortly after listing, the stock closed at $131.11 on Thursday, according to Yahoo Finance.
At that price, SpaceX was down nearly 42% from its record high and closed below its IPO price of $135 for the first time. Thursday also extended the stock’s losing streak to five sessions.
Ark’s purchase strengthens its long-term conviction
Ark’s renewed buying suggests Wood treated the decline as an opportunity to expand her position. However, the investment firm did not provide a short-term price forecast linked to its recent purchases.
The position also carries valuation and presentation risks. according to ReutersSpaceX shares are trading at about 49 times its revenues, compared to about 15 times Tesla, while the company’s market value has fallen to about $1.8 trillion.
Selling pressure could increase when restrictions on employees and early investors begin to expire in August. Reuters reported that the first issue of the lockup may make 911.5 million shares available after SpaceX posts its initial earnings results, although non-lockup shareholders will not be required to sell.
Bearish traders have already benefited from the pullback. Data from Ortex Technologies, cited by Reuters, showed that short sellers have collected about $8.7 billion in paper gains since the IPO, with roughly 49% of the shares available on loan.
SpaceX stock remains trapped in a downward channel
On the 1-hour TradingView chart, SpaceX stock remains within a downward channel formed by a series of lower highs and lower lows since early July. The last candle closed near $131.07 after trading between $131.01 and $132.89.
The Aroon indicator readings on the chart show that Aroon Down is at 85.71%, compared to Aroon Up at 7.14%, indicating that sellers continue to control the price structure in the short term. At the same time, the average trend indicator reading of 31.22 shows that the current trend is retaining notable strength.
The channel floor sets immediate support between $128 and $130. Depending on the chart structure, a confirmed break below that area could expose $125, while the upper channel boundary creates the first resistance area between $133 and $135.
For a stronger recovery, the chart shows that buyers will need to reclaim the channel cap before challenging the $140 level. Until such a breakout occurs, Ark’s recent purchase provides an institutional vote of confidence but does not reflect the stock’s bearish technical structure.
