Longtime SpaceX Investor Cathie Wood Made This Move on IPO Day. Should You Follow?
Written by Adria Cimino for The Motley Fool -> Cathie Wood of Ark Invest is a major investor in Elon Musk-led companies. SpaceX is the biggest holding in her Ark Venture fund, while Tesla is the largest holding in her Ark Innovation fund. Cathie Wood, the founder of Ark Invest
Cathie Wood of Ark Invest is a major investor in Elon Musk-led companies.
SpaceX is the biggest holding in her Ark Venture fund, while Tesla is the largest holding in her Ark Innovation fund.
Cathie Wood, the founder of Ark Invest, is known for her support of Elon Musk's innovations and ambitions. Wood's biggest holding in the flagship Ark Innovation fund is Tesla , and SpaceX (NASDAQ: SPCX) is the top holding in the Ark Venture fund. Musk is the chief executive officer of both companies.
It's not surprising that Wood holds shares of Musk-led companies because her investment strategy involves getting in on innovators early -- before they accomplish major goals. Wood has spoken about the promise of robotaxis as a growth engine for Tesla. As for SpaceX, Ark wrote prior to its IPO: "The existing business segments, at their current trajectories, are plenty sufficient to justify a compelling investment case."
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Wood's SpaceX holding, through the Ark Venture Fund, took place in the private market, as the company's valuation climbed from $350 billion in 2024 to the current valuation of more than $2.1 trillion. The stock began trading on June 12, after raising $75 billion in the world's biggest IPO on record.
So, now you might wonder: What move did Wood make on IPO day? Let's find out, and consider if you should follow.
First, it's important to note that Wood can't sell SpaceX shares immediately because she is restricted by a lockup period. During this period, early investors in the company aren't allowed to sell their shares. Often, lockup periods span the first 90 to 180 days after the IPO. The idea is to prevent a great number of shares from flooding the market in a short period of time as some of the company's first supporters lock in some gains.
