A SpaceX Falcon 9 rocket carries 10 Iridium NEXT satellites into orbit.
mdesigner125 | iStock Editorial | Getty Images
Trading within the new space exploration ETF from Ark Invest started on Tuesday, as Cathie Wood’s agency appears to be like to faucet the rising space trade.
“Space is already an invisible backbone to our economy and we think that’s only going to become more so as [satellite] constellations launch,” Ark Invest analyst Sam Korus instructed CNBC’s Morgan Brennan on “Power Lunch.”
Shares of ARKX slipped a bit greater than 1% in its first day of trading, with the inventory opening at $20.50 a share.
“We’ve all seen the means going around on Twitter,” Korus stated, acknowledging public skepticism of ARKX’s holdings.
“The fact that people are dismissing this out of hand is very reassuring to us, and kind of demonstrates the type of research that we’re doing and how we can be unique,” he added.
Korus gave the instance of Netflix, which has a 1.25% weighting in ARKX.
“Netflix … has 200 million paying subscribers. In the U.S. alone, there’s over 40 million people who don’t have access to broadband and so, if a satellite solution can bring access to those customers and expand the addressable market and the topline for Netflix, then this is something that is very important,” Korus stated.
While not one of the seven SPACs that not too long ago introduced mergers with space firms are in ARKX, Korus famous that Ark is “constantly evaluating these companies.”
“I think with SPACs it’s important to remember that a lot these are almost at the pre-IPO stage,” Korus stated. “We really want to be sure that we’re picking the winners long term, particularly in aerospace – where many companies do go bust and things get delayed.”