RKLB Stock Eyes Worst Month Ever, But Cathie Wood Keeps Buying — ARK Adds Rocket Lab, Cuts Exposure To $8B Takeover Target

• Rocket Lab’s $8 billion Iridium deal would add satellite communications, spectrum and recurring service revenue.
• Iridium is expanding its IoT footprint through a new Skywave partnership for heavy-equipment connectivity.
• Rocket Lab recently won a record $266 million U.S. Space Force contract covering 12 launches, with options for six more.

Shares of Rocket Lab (RKLB) are enduring a record monthly slide, yet Cathie Wood’s ARK Investment Management is adding to the stock even as it cuts exposure to Iridium, Rocket Lab’s $8 billion takeover target.

RKLB stock has plunged 37% so far this July, with shares also tracking their third straight week in the red. 

ARK Buys Rocket Lab, Sells Iridium

ARK’s latest trade disclosures show that the firm bought 62,497 Rocket Lab shares on Tuesday across the ARK Autonomous Technology & Robotics ETF (ARKQ) and ARK Space & Defense Innovation ETF (ARKX) worth about $4 million. At the same time, ARK sold a combined 184,670 Iridium shares from the same two funds for about $8.4 million.

The split trade stands out less than a month after Rocket Lab agreed to acquire Iridium in a cash-and-stock deal carrying an enterprise value of about $8 billion. Under the deal, Iridium shareholders are set to receive $27 in cash, plus Rocket Lab stock, determined by an exchange ratio subject to a collar, for a notional value of $54 per Iridium share. 

The deal would turn Rocket Lab into a more vertically integrated space company spanning launch, spacecraft manufacturing, spectrum and communications. Iridium adds more than 2.55 million subscribers and a global low-Earth-orbit network, giving Rocket Lab recurring exposure to communications, internet-of-things, direct-to-device and positioning services.

Iridium Pushes Deeper Into Satellite IoT

Iridium has continued expanding its commercial footprint, while the deal works toward an expected mid-2027 closing. The company recently announced a partnership with Skywave aimed at heavy-equipment manufacturers, combining Iridium’s satellite network and Short Burst Data service with Skywave’s multi-network connectivity platform.

The integration gives manufacturers access to satellite, cellular and Wi-Fi connectivity across remote operating environments. This recurring communications business is precisely the type of revenue stream Rocket Lab is seeking through the acquisition.

RKLB Wins Record Space Force Launch Deal 

The ARK buying also comes just after Rocket Lab landed its largest launch contract to date. The company on Monday announced a $266 million multi-launch award from the U.S. Space Force, covering 12 suborbital missions with options for as many as six additional launches.

The first mission is expected no earlier than the end of 2026, with launches primarily planned from a new Rocket Lab site at the Pacific Spaceport Complex-Alaska. The contract deepens Rocket Lab’s exposure to national-security space at a time when the company is simultaneously expanding its launch footprint and pursuing Iridium’s defense-relevant communications network.

Rocket Lab could also benefit from a friendlier regulatory backdrop. The Trump administration on Tuesday proposed allowing the Federal Aviation Administration to waive certain environmental reviews for commercial launch sites, launches and reentries as activity is expected to rise from about 214 missions this fiscal year to more than 500 annually within a decade.

 Faster approvals could help Rocket Lab and other launch providers expand capacity and increase launch cadence, though the proposal is likely to draw environmental scrutiny.

How Do Retail Traders Feel About RKLB And IRDM?

On Stocktwits, retail sentiment was 'neutral' for Rocket Lab amid 'low' message volume, while Iridium sentiment was 'bearish' amid 'extremely low' activity. 

One user said, “$RKLB all space stocks are piece-of-junk stocks. They make no profits and will dilute repeatedly into oblivion over the next few years.”

Another user said, “$RKLB need a solid ER release and update to turn the ship around. Anyone that has owned this for a few years knows the swings are huge. Needless to say it’s out of favor right now. It’s been out of favor before and it Will come back.”

Over the past year, Rocket Lab shares have gained 42%, while Iridium has surged 83%.

For updates and corrections, email newsroom[at]stocktwits[dot]com.

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