Cathie Wood Is Ignoring the Panic and Buying the Dip in SpaceX Stock

Plenty of investors keep an eye on Cathie Wood’s moves for a reason. Her technology-focused ETFs at Ark Investment Management have earned a loyal following among investors who watch portfolio changes like a hawk.

Cathie Wood gave the market another talking point on Monday, July 13, as Ark Invest made one of its biggest headline moves by loading up on SpaceX Corporation (SPCX). 

SpaceX has kept traders on their toes since its historic IPO. Fresh opinions about the company's long-term growth prospects, sharp price swings, and ambitious plans have fueled nonstop discussion across Wall Street. The latest round of chatter gained even more steam after CEO Elon Musk discussed the company's orbital data center plans. 

Musk said SpaceX would "start flying them next year." Short seller Jim Chanos immediately poured cold water on the idea by questioning whether the plan could actually work. Those opposing views have kept SpaceX in the spotlight as investors balance Musk's bold vision against the company's ability to deliver.

Ark Invest put its money where its mouth is. ARK Innovation ETF (ARKK) led the buying spree with 88,957 shares. ARK Autonomous Technology & Robotics ETF (ARKQ) followed with 32,556 shares. ARK Space & Defense Innovation ETF (ARKX) added 8,728 shares, while ARK Next Generation Internet ETF (ARKW) picked up another 23,008 shares. 

Based on SpaceX's closing price of $139.14 on July 13, those purchases carried a value of nearly $21.3 million. Ark had already snapped up millions of dollars worth of SpaceX shares last week, so the firm clearly continues to back its conviction. 

So, as Cathie Wood keeps filling her basket with SpaceX’s shares, let us see whether investors should follow her lead.

About SpaceX Stock 

Headquartered in Starbase, Texas, SpaceX develops advanced space transportation, satellite internet, and artificial intelligence (AI) technologies. The company has built a massive presence across the space economy and now commands a staggering market cap of $1.82 trillion.

SpaceX operates the Starlink broadband network and designs and launches reusable rockets and spacecraft through its Falcon, Dragon, and Starship programs. Moreover, it supports commercial and government space missions and provides AI models, computing infrastructure, and digital platform services to customers around the world.

The post IPO euphoria has gradually given way to a more measured view of SpaceX. Its shares are down 12.22% over the past month as investors stepped back to reassess the company's lofty valuation. 

Plus, profit booking by early shareholders, broader market weakness, concerns over financing needs, potential dilution, and elevated spending all combined to pressure the stock.

From a valuation standpoint, the stock is currently trading at 710.01 times forward adjusted price-to-earnings and 47.14 times forward sales. Both valuation multiples remain well above industry averages, reflecting the premium investors continue to assign to the company.

A Closer Look at SpaceX’s Q1 Earnings

On May 20, SpaceX provided investors with their first comprehensive look at its financial performance through its S-1 IPO prospectus filed with the SEC. For Q1 FY2026, the company generated total revenue of $4.7 billion, up 15.4% year-over-year (YOY). However, net loss per share widened 605.6% YOY to $1.27.

Loss from operations totaled $1.9 billion, and adjusted EBITDA reached $1.1 billion. Moreover, net loss widened 709.8% from the year-ago period to $4.3 billion. But when speaking of the top-line growth, SpaceX also stated that its Space and Connectivity businesses generated the "substantial majority" of consolidated revenue during the first quarter of FY2026.

Starlink powered the company's largest business. The Connectivity segment generated $3.3 billion in revenue, produced income from operations of $1.2 billion, and delivered adjusted EBITDA of $2.1 billion during the quarter. By the end of March, SpaceX had deployed more than 9,600 Starlink satellites while serving 10.3 million subscribers.

The Space segment, which houses the company's rocket launch operations, generated $619 million in revenue. The business reported a loss from operations of $662 million and an adjusted EBITDA loss of $351 million.

SpaceX also disclosed that it has invested more than $15 billion in developing Starship, its next-generation rocket designed to transport large volumes of cargo and potentially serve as a lunar lander. 

Meanwhile, the company's AI segment, which includes the xAI business and now operates as "SpaceXAI," generated $818 million in revenue during the March quarter. The segment posted a loss from operations of $2.469 billion and an adjusted EBITDA loss of $609 million.

Looking ahead, analysts expect losses to widen before profitability improves. Wall Street projects Q2 FY2026 loss per share to widen 100% YOY to $0.25. For full FY2026, analysts expect loss per share to widen another 100.1% YOY to $0.67. 

Forecasts then point to a turnaround in FY2027, with EPS rebounding to $0.63, representing 194% growth from the previous year.

What Do Analysts Expect for SpaceX Stock?

Deutsche Bank analyst Edison Yu maintains a “Buy” rating alongside a $255 price target. Yu believes SpaceX has "accomplished what governments have struggled to do for decades" by making large rockets reliable, reusable, and increasingly affordable, with Starship standing as the company's defining achievement.

Cantor Fitzgerald analyst Colin Canfield also remains firmly bullish. He has assigned an “Overweight” rating along with a $246 price target. Canfield believes SpaceX occupies a unique position as a planetary infrastructure company. He also believes that structure could create value beyond what traditional valuation models currently capture.

Overall, Wall Street is leaning in SpaceX's favor. SPCX stock carries an overall “Moderate Buy” rating. Among 31 analysts covering the name, 21 recommend “Strong Buy,” two assign “Moderate Buy,” seven remain on “Hold,” while one analyst recommends “Strong Sell.”

To that end, the average price target of $235.26 implies potential upside of 64.4%. The Street-High target of $800 points to a potential gain of 459% from current levels.