Ark Invest, led by Cathie Wood, bought Rocket Lab shares across three exchange-traded funds while trimming its positions in Alphabet on Tuesday. The moves came as investors weighed Rocket Lab’s upcoming Neutron rocket launch against questions about the durability of Alphabet’s search dominance.
The Rocket Lab Trade
Ark Invest purchased a combined 369,612 shares of Rocket Lab Corp. (NASDAQ:RKLB) through the ARK Innovation ETF (BATS:ARKK), the ARK Autonomous Technology & Robotics ETF (BATS:ARKQ) and the ARK Space & Defense Innovation ETF (BATS:ARKX).
The ARKK fund bought 277,573 shares, while ARKQ added 59,746 shares and ARKX purchased 22,293 shares.
Ark’s buying followed renewed investor interest in Rocket Lab’s growth prospects. Cantor Fitzgerald recently reaffirmed its Overweight rating and $122 price target, citing the company’s pending acquisition of Iridium Communications Inc., its strong launch record and the planned debut of its Neutron rocket.
Rocket Lab has completed 96 successful Electron launches, according to the Benzinga context provided. Cantor Fitzgerald described Neutron’s first launch, targeted for later this year, as the company’s "most material catalyst" and said the rocket could become a direct competitor to SpaceX’s Falcon 9.
Rocket Lab also has a diversified customer base, three rocket platforms and dedicated launch sites. The company said it had secured enough cash to fund the Iridium acquisition, which is expected to close in mid-2027.
The Alphabet Trade
Ark Invest sold a combined 16,422 Class A shares of Alphabet Inc. (NASDAQ:GOOGL). ARKQ sold 11,969 shares, while ARKX sold 4,453 shares.
The sales came as analysts continued to examine whether Alphabet’s core search business can maintain its position as artificial intelligence changes how consumers find information online.
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 more than 70% of its profits by his estimate. He also said Alphabet had regained search share after losing ground to OpenAI’s ChatGPT earlier in 2025.
Mahaney said Alphabet’s improving search position could support its advertising business, while the Gemini AI platform is narrowing the gap with ChatGPT. He also pointed to Google’s next-generation Gemini models and growing adoption of its tensor processing units as potential catalysts.
However, the analyst cautioned that competitive leadership in artificial intelligence could shift as Alphabet, OpenAI and other technology companies continue developing their products.
Other Key Trades
- Twist Bioscience Corporation (TWST): Ark Invest sold 21,335 shares through ARKG.
- 10x Genomics, Inc. (TXG): ARKG sold 49,651 shares.
- Beam Therapeutics Inc. (BEAM): ARKG bought 9,519 shares.
- Veracyte, Inc. (VCYT): ARKG bought 12,583 shares.
- Scribe Therapeutics Inc.: ARKG bought 88,323 shares.
Benzinga Edge Stock Rankings indicate Rocket Lab stock has a Momentum score in the 46th percentile.
See More: Top Momentum Stocks
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
Photo Courtesy: Ira Lichi On Shutterstock.com
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