Ark Invest Bets Big on Rocket Lab, Trims Alphabet Holdings

Cathie Wood's Ark Invest has made significant changes to its portfolio this week. The firm, known for its focus on innovative and growing companies, increased its stake in Rocket Lab through three exchange-traded funds while trimming its holdings in Alphabet.

The purchases of Rocket Lab shares were substantial, with a combined total of 369,612 shares acquired across the ARK Innovation ETF (ARKK), the ARK Autonomous Technology & Robotics ETF (ARKQ) and the ARK Space & Defense Innovation ETF (ARKX). The ARKK fund bought 277,573 shares, while ARKQ added 59,746 shares and ARKX purchased 32,293 shares.

The increased stake in Rocket Lab follows a positive note from Cantor Fitzgerald, which reaffirmed its Overweight rating and $122 price target for the company. The firm cited several factors contributing to its optimism, including the planned debut of Rocket Lab's Neutron rocket later this year, the potential for direct competition with SpaceX's Falcon 9, and the acquisition of Iridium Communications Inc.

Meanwhile, Ark Invest sold a combined 16,422 Class A shares of Alphabet. The sales came as analysts continued to examine whether Alphabet's core search business can maintain its position in an AI-driven landscape. Evercore ISI analyst Mark Mahaney said Google Search remains the company's key financial driver, accounting for more than half of Alphabet's revenue and over 70% of its profits.