SpaceX stock recently traded near $117, down 5% and falling below its $135 IPO price to mark its lowest level since listing, as ARK Invest CEO Cathie Wood defended her fund's $80 million position in the company. The decline extended a sharp pullback that erased over $1 trillion in market value over the past month, with reports pointing to a planned $116 billion share unlock adding pressure if early holders decide to sell. Wood reaffirmed ARK's long-term view and said SpaceX is expanding deeper into AI infrastructure through its satellite network and data center strategy, calling it potentially "the most important company in history."
SpaceX Stock Drops Below $135 IPO Price
SpaceX stock recently traded near $117, marking a 5% decline and dropping below its $135 IPO price for the first time since listing. The sell-off extended a sharp pullback from earlier highs, with the company losing more than $1 trillion in market value over the past month. Markets have placed SpaceX under closer investor scrutiny as they assess its valuation and upcoming share unlocks. Reports pointed to a planned $116 billion share unlock, which could add pressure if early holders decide to sell. Despite the decline, ARK Invest allocated about $80 million to SpaceX after its public debut. Wood said the stock is down from its peak but not from the original IPO level.
Cathie Wood Defends SpaceX as Infrastructure Play
Wood said SpaceX is building more than a space launch company and reaffirmed ARK's long-term position in the stock. "We think this could become the most important company in history, and I mean in global history," Wood said, tying that view to SpaceX's launch business, satellite network, and growing data center strategy. She pointed to SpaceX's role in global communications, where Starlink gives the company a broad satellite network that operates across borders. Wood said telecom has historically been a local business, often entered by buying national telecom companies, but SpaceX's satellite model changes that structure by offering a global communications system from orbit.
Wood also said SpaceX controls about 75% of satellites currently in orbit, giving the company a large base for communications, space services, and future orbital infrastructure. ARK's CEO linked SpaceX to frontier AI, saying orbital data centers could become highly economic and may help Elon Musk's companies train advanced AI models at lower cost. Musk warned investors against betting against SpaceX shares, writing that "The survival probability of firms that maintain a significant short position in SpaceX over time is very low."
SpaceX Plans Texas Data Center Expansion for AI Computing
SpaceX is preparing for at least one large-scale data center in Texas, which could increase its AI computing capacity beyond its Memphis-area hub where it operates two data centers with around 1 gigawatt of compute capacity. The company has explored several potential Texas sites in recent months and has considered building new data centers from scratch and converting an existing warehouse for computing operations. The planned Texas project could reach a similar or larger scale than the Memphis facilities, and SpaceX has already sent some data center staff to Texas as it prepares for the expansion.
The company has signed AI computing deals with Anthropic and Google, expanding its effort to generate revenue from AI infrastructure. These agreements add another business line beside launches, satellites, and communications. Wood said SpaceX is already renting data center capacity to major AI companies and added that the company's combination of launch systems, satellites, communications, and AI computing makes it a wider infrastructure business.
FAQ
What is SpaceX stock trading at recently?
SpaceX stock recently traded near $117, down 5% and falling below its $135 IPO price to mark its lowest level since listing.
How much has ARK Invest allocated to SpaceX?
ARK Invest allocated about $80 million to SpaceX after its public debut, with CEO Cathie Wood defending the position as a long-term infrastructure play.
What data center expansion is SpaceX planning?
SpaceX is preparing for at least one large-scale data center in Texas to increase AI computing capacity beyond its Memphis-area hub, which operates two data centers with around 1 gigawatt of compute capacity.
