NEW YORK — Ark Invest CEO Cathie Wood purchased $21.3 million in SpaceX stock as shares plummeted below their initial public offering price.
The sweep across multiple Ark funds capitalizes on a sharp 45% pullback in the space exploration giant. SpaceX traded well above $200 per share right after going public before dropping under its $135 debut price. The stock now represents roughly 4.5% of the flagship Ark Innovation ETF, sitting among top holdings alongside Tesla, Tempus AI, and CRISPR Therapeutics.
Wall Street sentiment remains bullish despite the swift downturn. Nearly 30 analysts tracking the company set an average 12-month price target of $243.81, pointing to a potential 111% gain from current trading levels.
The long-term case for SpaceX hinges heavily on artificial intelligence rather than launch services alone. In its IPO prospectus filing, the company wrote, “We believe we have identified the largest actionable total addressable market in human history”.
SpaceX estimates its total addressable market at $28.5 trillion, with more than 90% tied directly to its AI division. That total dwarfs the company’s current $1.5 trillion market capitalization.
Morgan Stanley analysts reiterated a $300 price target on SpaceX shares. The investment bank expects company revenues to jump from $18.7 billion in 2025 to $319 billion by 2030, reaching $3.3 trillion by 2040.
Wall Street views remain widely divided on exact valuation timing. Price targets across firms range from a low of $115 to an aggressive $800 high mark.
Risks persist as SpaceX operates without consistent profitability. The company will likely need to raise additional capital to finance its long-term expansion goals.
Morgan Stanley served as an underwriter for the IPO, creating incentive to stay active in future corporate financings. The bank’s internal models show potential 12-month share values landing anywhere between $75 and $600 depending on execution.
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