Ark Invest Buys SpaceX Dip Against the Trend, Why Cathie Wood Is Bullish on Musk’s ‘Orbital Computing Power Empire’

On June 22, as SpaceX's stock price fell below its listing closing price, Cathie Wood's ARK Invest spent over $30 million to purchase more than 210,000 additional shares of SpaceX stock. However, this was not Cathie Wood's first purchase of SpaceX stock; she had already spent over $400 million to acquire approximately 3.29 million shares on the day of its official listing.

On the day of the SpaceX IPO, Cathie Wood acquired shares through allocation or primary market subscription, meaning the initial cost for this portion of shares was $135, while the price of her second addition to the position was mostly around $150. Notably, although SpaceX's price rose above $220 on June 16, Cathie Wood was not swayed by short-term paper profits, choosing instead to hold firm and continue buying on dips, indicating she remains bullish on its future.

In the eyes of Cathie Wood and her team, SpaceX is by no means a traditional aerospace rocket company, but rather a mega-behemoth combining "space cloud, energy infrastructure, and physical-level monopoly." They believe Wall Street currently severely underestimates SpaceX's disruptiveness. ARK's Chief Futurist, Brett Winton, even stated directly that SpaceX's long-term enterprise valuation could reach $2.5 trillion to $3.1 trillion.

From a business perspective, Cathie Wood and her team are highly optimistic about SpaceX's orbital data centers and Starlink. In its latest model, ARK pointed out that SpaceX's space edge computing—where data is generated in orbit, processed in orbit, and results are delivered directly—has a potential market size 10 to 20 times that of traditional satellite communications, a segment that was virtually a vacuum in Wall Street's pricing at the time.

Traditional Wall Street often questioned whether SpaceX's commercial aerospace was a bottomless pit that burned cash too fast and too much, but Cathie Wood pointed out that Starlink has already crossed its early high-cash-burn phase. Its unit economics are incredibly formidable, entering an ultra-high gross margin profitability phase characterized by "investing $50 million to yield $1 billion." ARK's underlying mathematical model estimated that relying solely on Starlink's own global coverage and commercial market share, without the need for any Mars narrative, is sufficient to support a $2 trillion valuation.

SpaceX is primarily supported by three major businesses: satellite communications, space launches, and artificial intelligence. Among these, satellite communications is the core business, accounting for over 60% of revenue, and is also SpaceX's only profitable segment, contributing $4.4 billion in operating profit in 2025 alone to subsidize the other two business lines. In other words, SpaceX is currently a conglomerate tech empire that 'uses high-margin Starlink to fund its two cash-guzzling giants, Starship and AI.' If you believe in the long-term future of 'space + AI edge computing,' its stock is worth considering.

Currently, SpaceX's stock price has corrected from its peak of $225 to around $154, shaking off most of the blind frenzy and bubble from the early IPO stage and returning to a reasonable strategic allocation range. Therefore, whether you are a long-term investor or a short-term trader, it is a viable buy. Specifically, long-term investors can emulate Ark Invest by buying in tranches, while short-term traders should watch the $150 level closely and cut losses if it breaks below this support again.

SpaceX price chart, Source: TradingView

This content was translated using AI and reviewed for clarity. It is for informational purposes only.