Ark Invest Bets Big on Rocket Lab as Cathie Wood Trims Alphabet Stake

Cathie Wood's Ark Invest made significant moves in its portfolio on Tuesday, buying into Rocket Lab while trimming its position in Alphabet. The investment firm purchased a combined 369,612 shares of Rocket Lab Corp. through three exchange-traded funds: the ARK Innovation ETF (ARKK), the ARK Autonomous Technology & Robotics ETF (ARKQ), and the ARK Space & Defense Innovation ETF (ARKX).

According to analysts at Cantor Fitzgerald, Rocket Lab's growth prospects have renewed investor interest in the company. They recently reaffirmed their Overweight rating on Rocket Lab stock with a price target of $122, citing the company's pending acquisition of Iridium Communications Inc., its strong launch record, and the planned debut of its Neutron rocket.

The Neutron rocket is expected to be a significant catalyst for Rocket Lab, as it could potentially become a direct competitor to SpaceX's Falcon 9. The company has already completed 96 successful Electron launches and has secured enough cash to fund the Iridium acquisition, which is expected to close in mid-2027.

Meanwhile, Ark Invest sold a combined 16,422 Class A shares of Alphabet Inc., trimming its position in the tech giant. This move comes as analysts continue to examine whether Alphabet's core search business can maintain its position as artificial intelligence changes how consumers find information online.