Cathie Wood just made a massive bet on Rocket Lab (RKLB), buying more than 700,000 shares as the space stock continues to reel from a sharp selloff.
Last week, Ark Invest purchased more than 705,000 shares of Rocket Lab, with the transactions worth roughly $45 million. That makes the space company one of Ark’s biggest disclosed additions by value during the period and puts Wood firmly on the bullish side of the debate surrounding RKLB stock.
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The timing is notable. Rocket Lab shares have fallen more than 57% from their May high as investors digest delays to the company’s Neutron rocket, a major NASA contract loss to Blue Origin, and broader pressure on high-growth stocks. The big question is whether Wood is simply buying the dip or seeing long-term value that the market has overlooked.
Rocket Lab Stock Has Taken a Major Hit
Rocket Lab’s recent performance has been anything but smooth. Over the past year, RKLB stock is still up roughly 32%, but the stock has struggled in 2026, falling about 9% on a year-to-date (YTD) basis.
Several issues have weighed on sentiment. Neutron rocket delays remain one of the biggest concerns because the medium-lift rocket is expected to become an important driver of Rocket Lab’s future growth. Investors were also recently disappointed after NASA awarded a roughly $700 million Mars communications contract to Blue Origin instead of Rocket Lab. Executive share sales and higher Treasury yields, which tend to pressure richly valued growth companies, have added to the selling pressure.
www.barchart.com Why Cathie Wood’s Buy Matters
Ark Invest spread its purchases across multiple trading days and exchange-traded funds (ETFs). On Aug. 31, the Ark Innovation ETF (ARKK) bought 200,303 shares worth about $12.9 million. On Sept. 1, Ark Invest added another 504,799 shares across three ETFs, worth roughly $31.6 million.
The buying is significant because it comes after a major correction rather than during a rally. Wood has repeatedly favored innovative companies with potentially large long-term markets, and Rocket Lab fits that strategy through its launch services, satellite manufacturing, and broader space infrastructure ambitions.
The purchases suggest Ark Invest is willing to look beyond the near-term Neutron setbacks and NASA contract loss. Instead, Wood appears focused on Rocket Lab becoming a larger vertically integrated space company.
Rocket Lab Keeps Expanding Beyond Launches
Rocket Lab’s story is also becoming much broader than rocket launches.
In June, the company announced a landmark agreement to acquire Iridium Communications, a move that could create a more vertically integrated space business spanning spacecraft design, manufacturing, launch, and constellation operations. Rocket Lab has also completed its acquisitions of Mynaric and Motiv and introduced GHOST, a globally deployable launch system with its first location in Alaska.
Meanwhile, its contract pipeline remains strong. The company recently secured a $397 million U.S. Space Force contract for the SB-AMTI program and more than $160 million across two contracts to build geostationary satellites.
Strong Q2 Results and Wall Street’s View
Rocket Lab’s second-quarter results provided another reason for Wood’s bullish stance. Revenue reached $234 million, up 62% year-over-year (YOY) and slightly ahead of consensus expectations of about $232 million. Space Systems generated $189.5 million, while Launch Services contributed $44.6 million.
Product revenue nearly doubled to $181.3 million from $92.7 million a year earlier. However, the company remained unprofitable, posting a net loss of $49.3 million, or a loss of $0.08 per share. Free cash flow was -$110.1 million, although backlog jumped 137% YOY to $2.36 billion.
Rocket Lab expects Q3 revenue of $250 million to $265 million, which would mark another quarterly record.
Wall Street remains optimistic despite Rocket Lab’s decline. Berenberg recently initiated coverage on RKLB stock with a “Buy” rating and an $83 price target, while Cantor Fitzgerald raised its target to $122. KeyBanc has a $135 target for Rocket Lab, while Needham has a “Buy” rating with a $120 target. Citizens JMP also has a “Market Outperform” rating and a $130 target.
Overall, analysts have a consensus “Strong Buy” rating and an average price target of $111.56, implying roughly 73% potential upside from current levels.
www.barchart.com On the date of publication, Nauman Khan did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
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