Cathie Wood’s ARK Invest bought $44.5 million of Rocket Lab stock on August 31 and September 1, acquiring 705,102 shares of the space company as it trades sharply below its 2026 peak. The purchase marks Wood’s aggressive accumulation of the stock over the past month, adding more than 1 million shares total as the cathie wood space stock investment strategy focuses on buying pullbacks in high-growth technology companies.
Rocket Lab shares have tumbled approximately 58% from their all-time closing high of $150.23 set on May 27, though the stock remains up about 65% since the start of 2026. The sharp decline reflects broader volatility in space-industry equities and mixed investor sentiment despite the company’s strong operational progress.
The company reported record second-quarter revenue of $234 million in August, representing 62% year-over-year growth and exceeding analyst expectations of $231.6 million. However, Rocket Lab posted a per-share loss of 8 cents, worse than the 6-cent loss Wall Street had anticipated. The earnings miss spooked investors despite the company’s operational achievements and expansion plans.
Rocket Lab’s backlog reached $2.36 billion at the end of Q2, a company record, and management disclosed adding more than $1 billion in new deals in the weeks following the earnings release. The company operates its Electron small-launch rocket with over 90 contracts signed and is developing Neutron, a larger rocket expected to reach the launch pad in the fourth quarter of 2026. Rocket Lab also announced a $8 billion acquisition of satellite communications provider Iridium Communications and established a German subsidiary to serve European sovereign space capabilities.
Despite Rocket Lab’s unprofitability—the company posted a $49.3 million net loss in Q2 and negative free cash flow of $371 million over the trailing 12 months—Wall Street remains broadly bullish. According to MarketBeat, analysts have set an average 12-month price target of $112.65, implying 76.5% upside from current levels. Berenberg recently initiated coverage with a Buy rating and $83 price target, citing the space economy’s expansion from $500 billion in 2025 toward $1 trillion by 2030.
Wood’s move into Rocket Lab mirrors her broader strategy of buying pullbacks in high-conviction technology stocks, similar to her aggressive accumulation of SpaceX shares since its June IPO. ARK’s flagship Innovation ETF, which focuses on disruptive technologies including space, artificial intelligence, and robotics, has delivered mixed long-term results—returning 13.29% year to date through September 3 but showing a five-year annualized return of negative 7.60%, according to Morningstar data. Despite Wood’s reputation for volatile performance, her conviction in space-industry growth remains evident, with SpaceX now representing 6.17% of the Ark Innovation ETF’s portfolio as of September 3.
Sources
- TheStreet — Cathie Wood’s ARK Invest purchase of 705,102 Rocket Lab shares worth $44.5 million on Aug. 31 and Sept. 1; stock decline from $150.23 peak; ARK Innovation ETF performance data
- Morningstar/MarketWatch — Rocket Lab Q2 2026 earnings: $234 million revenue, 8-cent per-share loss versus 6-cent expectation; $2.36 billion backlog; expansion plans and Iridium acquisition details
- MarketBeat — Analyst consensus rating and average price target of $112.65 for Rocket Lab; 12-month upside projection of 76.51%
- Dealroom — Confirmation of ARK Invest’s $44.5 million Rocket Lab purchase and related portfolio activity
- Barron’s — Rocket Lab Q2 earnings miss details and stock market reaction
