Cathie Wood reduces Alibaba stake, buys SpaceX shares

ARK Invest’s founder and chief executive, Cathie Wood, sold roughly $54 million of Alibaba shares in late June and this week used the proceeds to purchase about 44,000 SpaceX shares, according to ARK’s reported position activity.

Alibaba’s stock rallied on July 8 after a leaked fiscal Q1 preview showed a return to revenue growth in its core e-commerce segment. The share rise attracted retail and institutional buying while broader flows shifted away from some Western semiconductor names toward Chinese AI-related stocks.

ARK’s reduction of its Alibaba position reflects investor concerns over the timeline for monetizing Chinese large language models. Alibaba Cloud is estimated to hold a 40.1% share of China’s full-stack AI cloud infrastructure and has developed the Qwen model, but converting that market share into sustained, high-margin enterprise revenue is viewed as a challenge by some market participants.

Analysts and investors have also pointed to regulatory compliance requirements for AI in China and margin pressure from capital-intensive instant-commerce and delivery operations as additional constraints on Alibaba’s profitability.

ARK reported reallocating capital into SpaceX this week, with purchases amounting to about 44,000 shares. SpaceX has outlined plans for Starlink-related capacity that include orbital data-center concepts and large-scale computing services intended to support substantial AI workloads by the end of the decade.

Some investors note Alibaba trades at an estimated 15 times forward earnings and highlight its role in China’s digital ecosystem. ARK’s transactions moved funds from a consumer-facing, infrastructure-heavy e-commerce company into space and large-scale computing platforms.