Space Exploration Technologies Corp shares have fallen approximately 47% from their June peak, a drop economist Peter Schiff previously cited as evidence that the artificial intelligence-induced stock bubble has popped. However, ARK Invest CEO Cathie Wood is standing firmly behind the company, arguing it could become the most important company in global history due to its opportunities in global telecommunications through Starlink. Her comments come as the stock faces pressure from intensifying low-cost competition and ahead of a widely watched share unlock.

Wood’s conviction has been backed by significant action. Over the past several weeks, ARK Invest has repeatedly added to its SpaceX position, accumulating roughly $129 million in purchases. These buys included approximately $54 million last week, another $57 million earlier this week, and about $18 million following a recent Starship launch delay. The purchases were distributed across several flagship ARK ETFs, including the ARK Innovation ETF (ARKK), ARK Autonomous Technology & Robotics ETF (ARKQ), ARK Next Generation Internet ETF (ARKW), and ARK Space Exploration & Innovation ETF (ARKX).

ARK ETFs Increase Exposure

Rather than trimming positions after the stock's decline, ARK has used the weakness to accumulate shares. Among its funds, ARKX has become one of the most SpaceX-heavy diversified ETFs in the market. Following the latest purchases, SpaceX accounts for about 8% of ARKX's assets, making it the fund’s largest holding. This concentrated bet contrasts with traditional aerospace and defense ETFs, which typically allocate toward established contractors like RTX Corp, Lockheed Martin Corp, and Northrop Grumman Corp.

SpaceX-Focused ETFs Gain Spotlight

Wood’s optimism is likely to renew interest in ETFs designed specifically to capture SpaceX’s growth story. Several recently launched funds provide concentrated exposure, including the ProShares Ultra SpaceX (SPCF), Tradr 2X Long SpaceX Daily ETF (SPCM), Defiance Daily Target 2X Short SPCX ETF (SPCQ), and Kurv SpaceX Enhanced Income ETF (XSHP). These funds are built around SpaceX and its expanding ecosystem—such as Starlink satellite broadband, Falcon launch services, and Starship—offering investors a way to participate without owning the stock directly.

Valuation and Upcoming Catalysts

Despite the bullish sentiment from Wood, valuation concerns persist. The Future Fund LLC Managing Partner Gary Black argues the current valuation is mathematically unjustified given a forward enterprise value-to-revenue multiple of about 40 times, noting no historical precedent for a trillion-dollar company sustaining such a multiple. Former hedge fund manager Whitney Tilson also described the stock as nearly 10 times overvalued. However, Wall Street remains broadly bullish, with Raymond James Financial Inc. initiating coverage with a strong buy rating and an $800 price target, projecting Starlink’s revenue will reach $837 billion in 2031.

Investors are now focused on the upcoming earnings report and the expiration of the IPO lockup period. Roughly 20% of outstanding shares are expected to become eligible for trading following the next earnings report, raising concerns that early investors may realize gains. Analysts project revenue will jump to $6.87 billion in the second quarter and rise to $12 billion in the third quarter, driven by its data center business and major deals with Alphabet, Anthropic, and Reflection AI.

Space Exploration Technologies Corp's blockbuster $1.77 trillion IPO reportedly created more than 4,400 employee millionaires, underscoring how equity compensation can generate wealth alongside shareholder returns. The listing has also opened new avenues for ETF investors to gain exposure to the aerospace giant through funds like ProShares Ultra SpaceX and Tradr 2X Long SpaceX Daily ETF. As SpaceX integrates into major equity benchmarks, its weighting is expected to grow across broader market and sector ETFs.

Billionaire investor Mark Cuban voiced strong support for broad-based employee ownership during the What It Takes podcast by Unmoderated News. Cuban argued that every CEO, founder, and entrepreneur should grant equity to all employees, not just senior executives, citing his experience at Broadcast.com where roughly 300 employees became millionaires after its acquisition by Yahoo. He suggested governments could encourage this practice by offering lower corporate tax rates to companies that distribute equity more widely.

The renewed focus on employee ownership highlights a common trait among major holdings in technology-focused ETFs. Companies such as Nvidia Corp, Microsoft Corp, Alphabet Inc, Apple Inc, Amazon.com Inc, and Broadcom Inc have long used stock awards to attract talent. These firms dominate portfolios in funds like the Invesco QQQ Trust, Technology Select Sector SPDR Fund, and Vanguard Information Technology ETF.

Academic research supports the economic impact of employee ownership. A 2021 Harvard Business School study, cited by Fortune, found that if all private U.S. companies became 30% employee-owned, household wealth would roughly double. Separate studies have linked employee ownership to higher productivity, lower turnover, and greater corporate resilience. For ETF investors, SpaceX's public debut reinforces the connection between broad-based equity compensation and long-term market performance.