When Cathie Wood takes action, the market notices. As ETF Focus writes, ARK's Cathie Wood has sold about 20% of their stake in Virgin Galactic ( (SPCE) - Get Report), contributing to the stock's recent decline.
It's another blow for the stock, which was one of the first high profile de-SPAC transactions at the onset of the recent SPAC boom. Recall, Virgin Galactic was Chamath Palihapitiya's first go round in SPACs as Social Capital Hedosophia (IPOA) took the company public in a $2B deal that closed all the way back in 2019.
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As the SPAC market has come under fire recently, a point of contention is that SPAC sponsors don't stick around. A narrative that was fueled higher when Chamath and Richard Branson sold several hundred million dollars of Virgin Galactic stock earlier this year.
Popular stock pickers like Cathie Wood have helped fuel some of the retail buying in today's most popular stocks and selling by Wood's ARK funds will put additional downward pressure on some de-SPAC names as well. However, keep in mind not all de-SPACs have been duds, and there will surely be more winners to come.
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