Cathie Wood Keeps Buying Rocket Lab Stock as It Trades at Less Than Half Its Record

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Rocket Lab’s Bold Bet: Risky Yet Intriguing

Cathie Wood keeps buying Rocket Lab despite its steep drop and big questions around its future.

ARK Invest’s continued accumulation of Rocket Lab shares is a high-conviction play on a potential launch capacity crunch around 2030. The company’s $2.36 billion backlog is hard to ignore, signalling genuine demand for satellite launches. But the Neutron rocket, which is meant to ease this crunch, is still untested and its debut date remains uncertain. Meanwhile, Rocket Lab is burning cash fast—$110 million in just one quarter—which raises concerns about how long they can sustain operations before needing more capital, likely diluting current shareholders. Trading at 44 times sales, the market clearly prices in big success, leaving little room for error. South African investors should watch USD/ZAR closely here; a rise in risk sentiment could weaken the rand and make overseas listings like Rocket Lab more expensive to hold. If tech and growth stocks stumble globally, the rand often weakens further, increasing forex volatility for local investors with foreign exposure. This is a firm wait-and-watch for risk-tolerant investors only. this is just our opinion and not financial advice