Cathie Wood Doubles Down on SpaceX Competitor After Earnings

This article first appeared on GuruFocus.

Cathie Wood is buying Rocket Lab (NASDAQ:RKLB) after its post-earnings weakness, with ARK (ARK) Invest purchasing 292,873 shares worth about $23.4 million on Tuesday. The move signals that Wood is looking past a wider-than-expected quarterly loss and renewed concern over Neutron’s timeline, betting instead on Rocket Lab’s record backlog and its evolution into a much larger space-and-defense company.

Rocket Lab provides launch services through Electron and HASTE while building satellites and spacecraft components for government and commercial customers. Its upcoming reusable Neutron rocket is intended to push the company into the much larger medium-lift launch market.

ARK bought the shares across its ARKK, ARKQ and ARKX funds after Rocket Lab reported second-quarter revenue of $234 million, up 62% year over year and a company record. But its $0.08-per-share loss was wider than the $0.07 analysts expected.

The more important issue is Neutron. CEO Peter Beck warned that the window for a first launch by year-end is narrowing, although Rocket Lab says production of the first-stage tank remains aligned with delivering the vehicle to the launchpad in the fourth quarter.

Meanwhile, backlog surged 137% to a record $2.36 billion, with more than 90 launches contracted. Rocket Lab also expects Q3 revenue of $250 million to $265 million, which would mark another quarterly record.

Wood simultaneously reduced exposure elsewhere, selling about $20 million of Deere stock, highlighting ARK’s continued preference for space and other disruptive-growth themes.

Investor Takeaway

ARK’s purchase makes Neutron execution the central issue for investors.

A successful first launch would materially expand Rocket Lab’s addressable market and strengthen its ability to compete for larger commercial and government missions. The $2.36 billion backlog provides another cushion while Electron and Space Systems continue growing.

But delays would extend development spending and postpone the revenue opportunity investors are already pricing in.

Watch the Q4 launchpad milestone, Neutron testing, Q3 revenue execution and backlog conversion. If those remain on track, Wood’s post-earnings purchase could look like a calculated bet on temporary volatility rather than deteriorating fundamentals.