$SPCX SpaceX rebounds after a steep drop—has Cathie Wood successfully timed a bargain buy?
Recently, SpaceX’s stock has staged a dramatic comeback. After a selloff triggered by a disappointing earnings report, the shares rebounded strongly in just two days, rising more than 22%. That has once again put the spotlight on Cathie Wood, the so-called “Wooden Head” known for trend-following bargain buys.
However, Wood’s ARK funds didn’t buy in all at once. On the day of the IPO, she made a large purchase of roughly 3.29 million shares (with most of the cost concentrated around the $135 issue price), and during the June and July decline in the stock, the fund continued to add in batches of more than 0.5 million shares. As a result, it managed to bring the overall average cost basis down to roughly the $135–$140 range.
That said, even after such a swift rebound, based on the current price of around $133, this huge position still appears to be in a slight paper loss overall.
Do you think Cathie Wood’s investment was a success—or is this yet another case of being stuck in a drawdown?
Recently, SpaceX’s stock has staged a dramatic comeback. After a selloff triggered by a disappointing earnings report, the shares rebounded strongly in just two days, rising more than 22%. That has once again put the spotlight on Cathie Wood, the so-called “Wooden Head” known for trend-following bargain buys.
However, Wood’s ARK funds didn’t buy in all at once. On the day of the IPO, she made a large purchase of roughly 3.29 million shares (with most of the cost concentrated around the $135 issue price), and during the June and July decline in the stock, the fund continued to add in batches of more than 0.5 million shares. As a result, it managed to bring the overall average cost basis down to roughly the $135–$140 range.
That said, even after such a swift rebound, based on the current price of around $133, this huge position still appears to be in a slight paper loss overall.
Do you think Cathie Wood’s investment was a success—or is this yet another case of being stuck in a drawdown?