Cathie Wood's Ark Bought $21.3 Million of SpaceX Stock as Shares Fell 45% From Their Record High. Wall Street's Median Price Target Is $243.81, 111.5% Above the Current Close.
2026-07-27 09:25
•Ryan Vanzo •The Motley Fool
•••••• •••• Axe Capital view
Why SpaceX’s Slide Might Not Scare Off Long-Term Bulls
Cathie Wood’s Ark is doubling down on SpaceX despite shares falling 45% from peak prices.
SpaceX’s stock has taken a hefty hit, dropping nearly half from its record high and now sitting below its IPO price of $135. Cathie Wood’s Ark fund scooping up $21.3 million amid this slump shows clear faith in the company's long-term story, especially its AI ambitions. Wall Street’s median target of $243.81 suggests there’s considerable upside, but let’s be honest—SpaceX is still unprofitable and wildly volatile. At that scale and with ambitious goals, execution risk is huge. For South African investors, direct exposure isn’t there, but the USD/ZAR serves as a good barometer: if global risk sentiment swings with SpaceX and tech, the rand could see bouts of weakening on volatility. Given its unproven profitability, patience will be critical. this is just my opinion and not financial advice
I’d watch SpaceX indirectly through Ark Innovation ETF, but keep exposure light and be ready to trim if losses deepen. Also hedge timing via USD/ZAR moves since rand sensitivity to global tech risk remains intact.
- SPCX
- ARKK
- USD/ZAR
- SpaceX fails to deliver on growth or profitability
- Heightened global tech sell-offs hurting rand and related assets
5/10
Cathie Wood's Ark Investment Management purchased $21.3 million in SpaceX stock as shares fell 45% from their record high and now trade below the IPO price of $135. Wall Street analysts have a median 12-month price target of $243.81, representing 111% upside, though opinions vary widely. SpaceX's massive $28.5 trillion total addressable market opportunity, particularly in AI, drives bullish sentiment, though the company remains unprofitable and faces significant uncertainty.
This article was originally published by The Motley Fool and has been adapted here for Axe Capital Trading News.
Publisher: The Motley Fool
Author: Ryan Vanzo
Categories: Equities, Earnings, IPOs, Technology, AI, Semiconductors
Tickers: SPCX, ARKK, TSLA, CRSP
Sentiment: Positive - Wall Street consensus strongly supports the stock with a median price target of $243.81 (111% upside). Morgan Stanley projects massive revenue growth driven by AI division. However, sentiment is tempered by the company's unprofitability, wide analyst price target range ($75-$600), and significant execution uncertainty. Ark is actively buying SpaceX stock during the correction, demonstrating confidence in the company's long-term potential. The fund's aggressive growth-focused strategy aligns with SpaceX's high-risk, high-reward profile.
Keywords: SpaceX IPO, Cathie Wood, Ark Investment, stock correction, AI growth, price target, unprofitable company
Insights:
- SPCX: Positive: Wall Street consensus strongly supports the stock with a median price target of $243.81 (111% upside). Morgan Stanley projects massive revenue growth driven by AI division. However, sentiment is tempered by the company's unprofitability, wide analyst price target range ($75-$600), and significant execution uncertainty.
- ARKK: Positive: Ark is actively buying SpaceX stock during the correction, demonstrating confidence in the company's long-term potential. The fund's aggressive growth-focused strategy aligns with SpaceX's high-risk, high-reward profile.
- TSLA: Neutral: Mentioned as a top holding in Ark Innovation ETF but not discussed in the article content.