ARK Belê
- Cathie Wood’s ARK Innovation ETF and ARK Next Generation Internet ETF acquired 6.8 million shares in Palantir last week.
- The shares are worth about $ 172 million from Thursday’s closing price.
- Wood bought the dip in Palantir after a surprising loss of earnings and an expiration of the closing period caused share prices to fall.
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Cathie Wood’s Ark Invest ETFs acquired 6,834,900 shares in Palantir last week amid falling share prices at the company.
Palantir suffered a six-day loss in the past week, after showing a surprising loss of earnings and a blocking period released 80% of the big data company’s stock to trade in public.
Two of Cathie Wood’s best exchange traded funds took advantage of the decline.
The ARK Innovation ETF, ticker ARKK, bought 5,274,700 shares of the big data firm on Thursday and the ARK Next Generation Internet ETF, ticker ARKW, bought 1,560,200 shares on Monday.
At the closing price of Thursday, the two Ark Invest ETFs’ Palantir share amounts to approximately $ 172 million.
All ARK ETFs email their clients daily to clients.
While many analysts and investors are concerned about Palantir’s high valuation, the company is trading sales 43 times in a row over twelve consecutive months, Cathie Wood and her funds believe in the company’s long-term growth prospects.
Wood appeared on CNBC on Wednesday to talk about her interest and said she was pleased with Palantir CEO Alex Karp, who recently spent on growth, calling it a ‘refreshing attitude’.
However, some analysts and investors argue that Palantir’s dependence on government revenue could be a problem. Wood said she is not worried that 61% of the company’s revenue comes from the government.
“Some of the most important innovations in our lifetime have started in government, especially in the defense sector and in the intelligence sector,” the CEO added.
Wood is not the only supporter of Palantir. Analysts at Goldman Sachs upgraded Palantir to a ‘buy’ rating this week and added a price target of $ 34 to earnings. Analysts cited Palantir’s path to ‘sustainable growth’, predictable and growing government revenue and margin expansion as the reason for the move.
Yet overall analysts are mostly clumsy on Palantir. Morgan Stanley, Credit Suisse and William Blair have all issued a ‘sell’ rating for the firm in Denver after earnings.
The average price target for Palantir is also just $ 16.73, indicating a possible 33% drop from Thursday’s closing price. However, this did not stop Reddit merchants from taking an interest in the name.
The comment volume for Palantir on the now infamous WallStreetBets Reddit forum, according to data from SwaggyStocks, stood at 2,535, compared to only 1,465 for GameStop.
Palantir’s status on the subreddit could mean significant buying pressure from retailers in the name. Palantir traded 6.75% during the hour of the market on Friday, wiping out most of the company’s losses on Thursday.