Cathie Wood Just Bought $96 Million of This Beaten-Down Space Stock

This article first appeared on GuruFocus.

Cathie Wood is putting more money behind one of the biggest names in the commercial space race. ARK Invest purchased roughly $96 million worth of SpaceX (NASDAQ:SPCX) shares last week, making the Elon Musk-led company a major focus of its latest investment activity.

The purchases were spread across three of ARK’s actively managed ETFs: ARK Innovation (ARKK), ARK Space Exploration & Innovation (ARKX), and ARK Next Generation Internet (ARKW).

The move is notable because SpaceX offers exposure to more than rocket launches. Its business spans satellite deployment, commercial space transportation and Starlink, its satellite internet network. These operations give the company several ways to benefit as demand for space infrastructure expands.

For ARK, the investment also reflects a bet on the growing role of private companies in the space economy. SpaceX has built a leading position in orbital launches and satellite services, areas that could become increasingly important to communications, defense and global connectivity.

The latest purchase does not reveal ARK’s average buying price or its total SpaceX holdings. Still, the $96 million addition shows that Wood is willing to increase the fund manager’s exposure to Musk’s space venture.

Shares of SPCX are down 12% YTD.