Cathie Wood’s ARK Invest Boosted Its Rocket Lab Stake by $26 Million. What This Means for RKLB Stock.
Cathie Wood’s ARK Invest added about $25.9 million of Rocket Lab (RKLB) shares last week. It was not a one-off purchase. ARK had already bought more than 705,000 RKLB shares, worth about $45 million, across August 31 and Sept. 1.
ARK is adding shares as demand for launch services could tighten. A recent sector analysis says SpaceX (SPCX) plans to stop offering shared Falcon 9 missions after 2028, while Starlink uses about 79% of Falcon 9 capacity. That could leave more customers looking for alternatives. The report names Rocket Lab as a potential beneficiary and notes its record backlog of nearly $2.36 billion.
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Even so, RKLB has been volatile. The stock is up 56.05% over the past 52 weeks and 3.48% this year, but remains 52.19% below its May high of $150.23.
With ARK increasing its exposure, is Rocket Lab approaching a genuine re-rating? Let’s take a closer look.
Inside ARK’s Latest RKLB Purchase
On Sept. 22, ARK Invest bought roughly 360,000 shares of Rocket Lab. The stake was worth about $25.9 million, or close to $72 a share, and it went into the firm’s flagship ARK Innovation ETF (ARKK). The same weekly recap showed ARK adding Meta Platforms (META) while trimming Tempus AI (TEM) and CrowdStrike (CRWD).
The timing is no accident. RKLB has dropped more than 50% from its 2026 high of $151, hurt by a possible delay to the Neutron rocket’s first flight and dilution from a $1.944 billion share sale that is helping fund the pending Iridium Communications (IRDM) acquisition.
Wood is clearly treating that weakness as a buying opportunity. The Sept. 22 purchase came after an even bigger move earlier in the month, when ARK picked up more than 705,000 shares worth roughly $45 million after the stock’s plunge from its May high. Add it up, and ARK has now put nearly $71 million into Rocket Lab in September alone.
There’s also a pattern here. Back in October 2025, Wood was selling RKLB as the stock hit all-time highs, with her ARKX fund unloading 53,917 shares at $68.03. Now she’s buying at a steep discount. Buying pullbacks in companies she believes in is very much ARK’s style.
The Business Behind RKLB’s Rally
Rocket Lab’s second-quarter results help explain why investors are still paying close attention to RKLB. Revenue hit a record $234.1 million, up 62% from a year earlier and ahead of the $231.9 million analysts expected. Its Space Systems unit brought in $189.5 million, while Launch Services added $44.6 million.
Non-GAAP gross margin rose to 41.5% from 36.9%, and Rocket Lab’s GAAP loss narrowed to $0.08 per share from $0.13. The company is still spending heavily, though. Free cash flow was negative $110.1 million as it continued investing in Neutron and production capacity. On the plus side, backlog jumped 137% to $2.36 billion, and management expects Q3 revenue of $250 million to $265 million.
Rocket Lab’s proposed $8 billion cash-and-stock acquisition of Iridium Communications is part of the bigger plan. The deal would give Rocket Lab more than launch services and satellite manufacturing by adding satellite communications and recurring network revenue. Rocket Lab has raised $1.944 billion through a share sale and changed Iridium’s $1.775 billion term loan facility, allowing it to scrap a $3.6 billion bridge loan.
The new shares dilute existing investors, and the deal is not expected to close until mid-2027. Still, the funding removes one major question around the transaction and gives Rocket Lab a clearer path to build a business that can design, build, launch, and operate space systems.
Wall Street Weighs Rocket Lab’s Upside
Analysts will be watching Rocket Lab’s next earnings report, due Nov. 9. They expect a $0.05-per-share loss for the September quarter, versus a $0.01 loss a year earlier. For full-year 2026, the forecast is a $0.20 loss per share, an improvement from the $0.38 loss reported in 2025.
Cantor Fitzgerald analyst Andres Sheppard recently reiterated an Overweight rating on Rocket Lab and set a $122 price target. He sees the first Neutron launch and the Iridium Communications deal as the big upcoming events to watch. Sheppard also likes Rocket Lab’s launch sites, broad customer base, growing rocket lineup, and track record. RKLB rose 8.2% after his call.
Raymond James analyst Brian Gesuale also sees room for upside. He started coverage with an Outperform rating and an $80 price target. His view is that Rocket Lab can make more money by selling more than launches, including satellite platforms, software, and parts. That could bring in steadier revenue and more defense and science work.
BTIG analyst Andre Madrid is less convinced. He kept a Hold rating, saying some of the revenue optimism may already be built into the stock price. He is also watching Neutron’s remaining tests, Rocket Lab’s spending needs, and the work involved in bringing Iridium into the business.
Even with those concerns, Wall Street is mostly bullish. All 20 analysts tracked rate RKLB a consensus “Strong Buy”. Their average $110.11 price target points to about 52.5% upside from current levels.
Conclusion
ARK’s latest buy is a credible vote of confidence in Rocket Lab, but it does not erase the risks around Neutron’s timeline, acquisition integration, and dilution. The business is clearly gaining scale, with strong backlog growth and a broader push into space systems and satellite connectivity, while Wall Street still sees meaningful upside from current levels. Most likely, RKLB shares will remain volatile in the near term as investors wait for earnings and Neutron milestones. But if Rocket Lab executes on its launch plans and closes the Iridium deal cleanly, the stock’s direction should trend higher over the longer run.
On the date of publication, Ebube Jones did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. This article was originally published on Barchart.com