ARK Invest buys 348,406 SpaceX shares after election-driven drop

SpaceX shares decline after the election

Coingape reports that SpaceX, listed as NASDAQ: SPCX in the article, fell after Democrats swept the U.S. midterm elections. The stock closed regular trading at $135.92, down $5.39, or 3.81%, from the prior close of $141.31. The report says the drop came even though major U.S. stock indexes finished higher after Democrats took control of the Senate and House.

ARK adds to SpaceX holdings

According to Coingape, Cathie Wood-led ARK Invest used the weakness in SpaceX shares to buy 348,406 shares in total. The report says the purchases were spread across three exchange-traded funds. ARK Innovation ETF, or ARKK, bought 224,483 shares. ARK Autonomous Technology & Robotics ETF, or ARKQ, bought 63,478 shares. ARK Next Generation Internet ETF, or ARKW, bought 60,445 shares.

Estimated value of the trades

Coingape says the combined purchase was valued at about $47.36 million, using SpaceX’s closing price on November 4. The article says the buys were made while the stock was falling on concerns tied to the political climate that Musk’s companies could face after the elections.

Election-related concerns cited in the report

The article says analysts have raised concerns about possible delays or more investigation into Musk’s business plans. Coingape adds that investors viewed the election outcome as creating another layer of uncertainty for SpaceX stock. The report says this uncertainty included the possibility of more regulation affecting Elon Musk’s companies, including SpaceX’s government work, AI projects, and a possible Elon-Tesla combination.

Other ARK trades mentioned

Coingape also reports that ARK bought shares of Circle Internet Group, with ARK Fintech Innovation ETF buying 1,894 shares shortly before CRCL fell more than 12% on the day cited in the article. The report says other fund activity included sales of Bullish and Iambic Therapeutics by ARKK and ARKW, respectively, along with ARKW sales of CrowdStrike and Cloudflare shares, and ARKQ sales of Amazon and Alphabet shares.