Ark Invest on Monday said that SPCX’s 14% drop on Wednesday last week overlooked SpaceX’s $28.5 trillion total addressable market outlined in its IPO filings.
- Cathie Wood’s ARK Invest has made SpaceX one of its largest holdings across multiple funds since the company’s June 2026 IPO.
- Ark highlighted SpaceX’s efforts to build AI compute and its development of the Starlink satellite network.
- SPCX stock first closed below $135 on July 16 and has been trading under since, until Monday.
SpaceX shares tumbled about 14% on Wednesday after its first earnings call as a public company last week, as investors zeroed in on higher-than-expected spending on AI infrastructure and losses.
ARK Invest, in its latest newsletter, however, dismissed the day’s market reaction as short-term and said it overlooked SpaceX’s $28.5 trillion total addressable market outlined in its IPO filings. The firm remains firmly bullish on the long-term path toward Elon Musk’s multiplanetary and AI ambitions.
Shares of the rocket maker closed up 4% on Monday, climbing back above its IPO price of $135, after several weeks under. The stock first closed under $135 on July 16 and has closed under since, until Monday.
AI Compute Buildout, Starlink Upgrades Take Center Stage
SpaceX plans to expand its terrestrial computing power from roughly 2 gigawatts by the end of 2026 to 5–10 GW—closer to 10 GW—by the end of next year. ARK notes payback periods of less than a year and potential monetization of $30–$50 billion per GW, which it believes can support the company’s $1 trillion revenue target by 2030. Natural-gas turbines are expected to bridge power needs until solar capacity scales, following Musk’s reported purchase of a gas-turbine firm, Ark said.
Beyond AI, SpaceX is accelerating Starlink, the firm said. Starship’s next flight, targeted for late August, will deploy the latest versions of the satellites that can deliver about 20 times the bandwidth of current V2 satellites. The company also outlined plans for a network of small “femtocell-like” stations built into Starlink dishes to compete more directly with traditional mobile carriers, the firm noted.
Pending regulatory approval, SpaceX aims to catch the upper stage of the rocket on that same flight—a step toward full reusability that ARK estimates could eventually cut launch costs from about $1,000 per kilogram today to below $100 per kilogram, making orbital data centers economically viable.
Cathie Wood’s Heavy Bet
Cathie Wood’s ARK Invest has made SpaceX one of its largest holdings across multiple funds since the company’s June 2026 IPO. It ranks as a top position in the ARK Space & Defense Innovation ETF and sits among the biggest stakes in the flagship ARK Innovation ETF. ARK bought roughly $37 million more shares last week amid the post-earnings volatility, underscoring Wood’s conviction that SpaceX could become one of the most important companies in history.
SpaceX Q2 Report
Last week, SpaceX reported $7.8 billion in Q2 revenue, up 92% year-over-year. Net loss narrowed to $541 million, or $0.09 per share, from $1.0 billion, or $0.34 per share, in the year-ago period. The company ended the quarter with $100 billion in cash and marketable securities.
However, shares dropped after hours on Tuesday and on Wednesday as investors focused on the $18.4 billion capital expenditure recorded in the three months through the end of June. The company spent $15.8 billion on building its artificial intelligence capabilities alone.
How Did SPCX Retail Traders React?
On Stocktwits, retail sentiment around SPCX stock stayed within the ‘bullish’ territory over the past 24 hours, while message volume remained at ‘extremely high’ levels.
A Stocktwits user termed SPCX ‘overvalued.’
Other users cheered the stock rising back up above its IPO price of $135 following the 4% rally on Monday.
SPCX shares have been volatile since listing in June. The stock is now trading at about $139, above its $135 IPO price but far below its post-IPO peak of nearly $225.
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