Cathie Wood Bumps SpaceX Stake Amid Selloff as Musk Loses More Than Buffett's Net Worth Overnight

SpaceX stock crashed by over 16% on Monday and slid 4% further during Tuesday premarket hours, wiping off over $152 billion off of Elon Musk's net worth, which is equivalent to Warren Buffett's entire fortune. As of Tuesday, Buffett had a net worth of close to $150 billion, according to Forbes Real-Time Billionaires list.

The crash follows a two-day rally that buoyed SpaceX market cap to $3 trillion before the steep decline of $600 billion during the selloff, coinciding with KeyBanc Capital Markets' sector-weight rating on the stock and a concurrent $20 billion bond offering by the AI rocket company.

Elsewhere, SpaceX's Starship rockets remained grounded pending a Federal Aviation Administration investigation following a test flight mishap reported on 28 May, which could be also weighing on the stock price.

However, Ark Invest's Cathie Wood, who is long-time Tesla bull and believes Musk is the Thomas Edison of our time, made an opportunistic move by adding a total of 210,121 SpaceX shares during the stock crash.

Ark Invest purchased 131,837 shares through the Ark Innovation ETF, 43,486 shares through the ARK Autonomous Technology & Robotics ETF, 21,506 shares through the Ark Next Gen Internet ETF, and 13,292 shares through the ARK Space Exploration & Innovation ETF.

The latest trades added to Ark Invest's massive stake of 3.29 million shares acquired across its ETFs during SpaceX's recent Nasdaq debut. Note that SpaceX was already the largest position in Ark Invest's Venture Fund, ahead of both OpenAI and Anthropic.

Reason Behind Ark Invest's Roku Sale

Ark Invest reportedly sold 239,267 shares of Roku across its ETFs, worth over $33 million based on Monday's closing price.

Roku recently entered an agreement to be acquired by Fox in a $22 billion deal, which market experts believe turned the company into a deal-spread asset from a streaming-growth stock.

Wood sold Roku likely as part of a capital recycling into innovation as the Fox deal could mean Roku does not fit Ark Invest's risk category anymore rather than the stock becoming unattractive. Note that Ark had held a stake in Roku through years of volatility.

In all, the Fox deal was not likely a rejection of Roku's value, but validation of it as the company is acquiring distribution, connected-TV reach, and a larger position in ad-supported streaming, as well as combining The Roku Channel and advertising data with Fox's live sports, news, and entertainment, as well as Tubi assets.

This week, Ark Invest also offloaded shares of Strata Critical Medical and Twist Bioscience, and purchased over 450,000 shares of Roblox.

In all, Wood appears extremely bullish on SpaceX as well as Musk's EV company Tesla. She had also defended Musk's $1 trillion pay package and even predicted that Tesla's stock price could reach $2,600 per share within five years.

Wood is widely popular for her contrarian bets across disruptive markets spanning AI, space exploration, cryptocurrency, and genome development. She gained prominence when Ark ETFs gained by over 100% during the COVID-19 pandemic in 2020, outpacing broad market indices considerably.

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