Saturday, December 4

Cathie Wood’s Ark Invest bought $139 million of Palantir stock on Thursday alone as shares rocketed higher on strong sales forecast


Cathie Wood

  • Cathie Wood’s smash-hit active funds collectively bought $139 million in Palantir shares on Thursday as the stock shot up as much as 11%, Ark Invest revealed in its daily trade disclosures.
  • The buys indicate Wood thinks the company has considerable upside even given Thursday’s run-up.
  • On its Thursday morning earnings call, Palantir revealed 49% year-on-year revenue growth, beating expectations.
  • Sign up here for our daily newsletter, 10 Things Before the Opening Bell.

Cathie Wood’s smash-hit active funds collectively bought $139 million in Palantir shares on Thursday as the stock shot up as much as 15% on a buoyant sales forecast, Ark Invest revealed in its daily trade disclosures.

All six of Ark’s actively managed funds bought Palantir to the tune of 5.6 million shares, including its flagship Ark Innovation ETF, which bought around 2.3 million. Palantir closed at $24.89 on Thursday, giving the buys a total value of $139.4 million-though it wasn ‘t clear exactly when in the day Ark bought.

The purchases indicate Wood thinks the company has considerable upside even given Thursday’s run-up. If Wood had bought at Wednesday’s closing price, Ark would have paid roughly $14 million less for the positions.

Palantir said it expects third-quarter revenue of $385 million, ahead of analyst estimates for $380 million. It also reported second-quarter earnings per share of $0.04, versus estimates of $0.03.

CNBC first reported the Palantir buys.

Wood has supported Palantir for months, saying in February that the firm’s aggressive investment strategy and reliable public-sector revenue base bode well for the stock.

In March, Ark’s funds bought 2.6 million Palantir shares as the stock slid. Wood has often been quick to buy dips during sell-off periods, and also has evinced a willingness to double down on conviction bets like Tesla.

Palantir traded 0.2% higher as of 1:45 pm ET, while the Ark Innovation ETF slid 0.9%.



markets.businessinsider.com