Cathie Wood Just Bought $9.3 Million of This Beaten-Down Space Stock

This article first appeared on GuruFocus.

Rocket Lab (NASDAQ:RKLB) attracted fresh investment from Cathie Wood’s ARK Invest even as concerns over its next-generation rocket program weighed on the shares.

ARK funds purchased 168,633 Rocket Lab shares valued at about $9.3 million on Thursday. The acquisition came as the stock fell nearly 7%, extending its losses for the year to about 21%.

Investor concerns center on Neutron, Rocket Lab’s planned medium-lift launch vehicle. The company has pushed its first launch to 2027 after production issues required additional work, delaying a potential new source of revenue. Developing the rocket also adds to spending pressure, with Rocket Lab reporting negative free cash flow of $110 million in the second quarter.

Its existing business provides a counterweight to those risks. Rocket Lab’s backlog reached $2.36 billion at the end of June, up 137% from a year earlier, while an agreement covering 20 Electron launches adds to future demand visibility. Neutron’s schedule and development costs remain key factors for investors.