Popular American investment strategist Cathie Wood has bought more shares of Elon Musk's SpaceX, boosting investor sentiment after the newly-listed stock crashed 34% from its lifetime high following the historic initial public offering last month.
Cathie Wood’s ARK ETFs added shares worth $7 million across its funds including ARK Innovation ETF, ARK Next Generation Internet ETF and ARK Fintech Innovation ETF. To fund the stock purchases, Wood sold 5.7 lakh shares of China-based tech giant Alibaba.
Notably, this is the third time Wood has bought the dip since the SpaceX IPO last month. On the day of the Elon Musk-led company’s market debut, ARK was among the biggest buyers of the stock, purchasing about 3.3 million shares worth nearly $500 million. Prior to the much-awaited market debut, she had invested in the company through private market transactions.
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ARK Invest currently holds around 2 million SpaceX shares which have a market value of more than $280 million. Meanwhile another Elon Musk-led company holds the top spot in terms of largest weight in the firm’s ETFs. The company holds around 2 million shares of Tesla worth more than $658 million.
How have SpaceX shares been performing?
After raising $75 billion in the biggest-ever IPO in history, SpaceX began trading at $150 per share in June, marking an 11% premium to its IPO price of $135. After listing, the shares of the company sharply surged more than 50% in just three sessions, hitting a record high of Rs 225.64 apiece.
The shares of the Elon Musk-led company now have fallen more than 34% since then to close at Rs 148.30 apiece on Wednesday, erasing a major portion of the post-listing gains. The latest stake acquisition by Wood’s firm raises investor hopes that the stock may see further upside in future.
Morgan Stanley recently initiated coverage on the shares of SpaceX with an ‘Overweight’ rating and a target price of $300 per share, implying an upside potential of more than 102% from the stock’s previous closing price. Bernstein meanwhile initiated coverage with an ‘Outperform’ rating and a target price of $239 per share.
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(With inputs from agencies)
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