Ark Invest Seizes Buy Opportunity
Palantir Technologies, Inc.
PLTR shares dipped after an analyst downgraded the stock, but Cathie Wood’s Ark Invest capitalized on the weakness.
Strategic Purchase Details
What Happened: In a significant move, Ark Invest’s flagship exchange-traded fund, the Ark Innovation ETF ARKK, bought 777,143 shares of Palantir, while the firm’s Ark Next Generation Internet ETF ARKW and Ark Fintech Innovation ETF ARKF added 153,662 shares and 100,802 shares, respectively, based on daily trade disclosure from the firm. This bullish move is indicative of the firm’s confidence in the long-term prospects of the company.
Market Response and Insights
Palantir closed Friday’s session 1.66% down at $15.98, reflecting a temporary dip. However, at the current price, Ark’s total purchases of 1,031,607 Palantir shares are valued at $16.49 million. This bold acquisition speaks volumes about the conviction in Palantir’s future.
Analyst Downgrade and Rationale
Meanwhile, Jefferies analyst Brent Thill downgraded Palantir shares from “Neutral” to “Underperform,” and also slashed the price target from $18 to $13, signaling a potential 19% downside from current levels. The downgrade was attributed to the view that the stock has surged to unsustainable levels amidst the AI frenzy, coupled with perceived issues in monetization strategy, and slackening demand recovery in its commercial and government businesses.
Continued Investment Strategy
Coinbase Liquidation Continues: Additionally, Ark Invest continued its selling spree of Coinbase Global, Inc. COIN. The Wood-led firm’s Coinbase selling spree continued, as ARKK, ARKW, and ARKF together offloaded 133,823 shares of Coinbase valued at $20.61 million, based on the stock’s closing price of $153.98. The strategic move appears to be mainly attributed to profit-taking after accumulating the stock for most of 2022 and early 2023.
