High-flying Rocket Lab USA (RKLB) has been coming back down to earth lately and suffered another setback as Cathie Wood’s ARK Invest sold down some of its stake in the space launch and satellite company.
ARK sold a total of 76,331 shares across its Autonomous Technology & Robotics ETF (ARKQ) and the flagship Space Exploration & Innovation ETF (ARKX). After rallying on Wednesday RKLB dipped about 3% in the premarket session on Thursday.
According to the latest holdings figures, RKLB remains a top 10 holding in ARKQ, making up 3.5% of the fund, while it has a weighting in ARKX of more than 7% still. RKLB has been on a wild ride lately, with the stock falling about 35% off its January highs after a 600% surge in the year before.
Meanwhile, ARK raised its stake in defense contractor and drone manufacturer AeroVironment (AVAV) following the company’s earnings release on Wednesday in which the company slashed its full-year guidance in the wake of Donald Trump ending military support for Ukraine.
ARK Adds to Growing GTLB Position
ARK also bought more GitLab (GTLB) after a substantial purchase of the stock in the previous day’s session.
On Tuesday, ARK Innovation ETF (ARKK) and ARK Next Generation Internet ETF (ARKW) purchased 94,524 GitLab shares for about $5.32 million, amid growing optimism about the software development company’s growth potential.
The purchase by ARK, which has been building its stake in GitLab since December, came as GTLB stock surged about 12% after reporting market-beating Q4 FY25 earnings. GTLB posted 29% revenue growth in the Fiscal fourth quarter.
Is Rocket Lab USA a Good Stock to Buy?
Turning to Wall Street, RKLB stock has a Moderate Buy consensus rating based on eight Buys, three Holds, and no Sell ratings. The average price target for RKLB stock is $27.55 per share, which implies about 35% upside potential.
