Cathie Wood has named SpaceX as her favorite investment, predicting the Elon Musk-led company could become the most important company in global history. Wood's ARK Invest bought $529.7 million of SpaceX stock on its first day of trading, a bet that comes as the company's shares have fallen about 40% from their peak.
Why Wood is betting big
Wood has a history of early, high-conviction bets on Tesla and Bitcoin. She argues SpaceX holds a ten-year lead in rocket technology thanks to its reusable rockets. That lead, she says, is the foundation for everything else the company does.
The profitable piece — Starlink
SpaceX controls roughly 70% of all active satellites through its Starlink division. Starlink is the only part of SpaceX that is currently profitable. The company also rents computing power to AI firms like Anthropic and Google, adding another revenue stream.
The risks — losses and delays
SpaceX has accumulated $41.3 billion in losses according to its IPO filing. Recent Starship test delays have hurt the stock, which now trades near $119. Wood's own flagship ARK fund fell about 78% from 2021 to 2022 and wiped out $7 billion for investors between 2014 and 2024, a reminder that her picks don't always pay off quickly.
SpaceX's IPO filing is public, but no date is set. Wood's bet is long-term, but the stock's slide and the company's losses mean patience will be tested.
