Cathie Wood’s ARK Invest Bought Palantir Stock After Strong Earnings

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Cathie Wood.

Reed Young/ARK Invest

Fund institution ARK Invest, led by the good known portfolio manager and banal picker Cathie Wood, loaded up connected Palantir Technologies shares aft the analytics bundle institution posted beardown quarterly fiscal results

Early Thursday, Palantir reported June 4th gross of $376 million, up 49% from a twelvemonth ago, beating some the company’s ain people and the Wall Street statement by ample margins. Its earnings, astatine 4 cents a share, were a penny amended than estimated. 

The beardown results were driven by accelerating maturation successful the company’s U.S. commercialized business, including recently acquired clients specified arsenic Deere, BNY Mellon, and Southern California Edison. 

Palantir banal jumped 15% Thursday, rising to astir 9% supra wherever it started the year. The banal was down astir 5% successful 2021 done Wednesday’s close.

On Thursday, ARK bought a full of 5.6 cardinal Palantir shares crossed each six of its actively managed exchange-traded funds, according to information the institution releases connected its regular trades. Those shares were worthy $139 cardinal based connected the stock’s Thursday closing price. 

The $23 cardinal ARK Innovation ETF (ARKK) and the $6 cardinal ARK Next Generation Internet ETF (ARKW) present person weightings of much than 2% successful Palantir. ARK’s different 4 progressive ETFs added the institution to their portfolios for the archetypal clip since the banal went nationalist successful September 2020.   

ARK declined to remark astir its trades.

Palantir, based successful Denver, was co-founded by billionaire entrepreneur and task capitalist Peter Thiel. Since its IPO past year, the banal has been rangebound due to the fact that analysts’ views connected the growth outlook are divided. The June quarter’s beardown net look to person bolstered investors’ confidence.

Wood’s caller purchases could beryllium different bullish motion for the stock. She became celebrated arsenic a prima money manager past year acknowledgment to spectacular performances by immoderate of her progressive ETFs. Several were among the year’s best-performing funds, with returns of much than 100%.

This year, though, the funds person struggled. Interest rates person risen—a headwind for maturation stocks specified arsenic those Wood buys. Higher rates trim the existent worth of the currency companies volition make successful the future, and galore maturation companies are expected to present their champion performances years from now.

So-called abbreviated involvement connected the flagship ARK Innovation ETF precocious reached a grounds high, meaning more investors are betting that its terms volition fall.  

Wood has stuck to her guns, continuing to buy banal successful companies she believes volition turn tremendously successful the adjacent 7 to 10 years. On the database are the cryptocurrency speech Coinbase Global (COIN) and Robinhood Markets (HOOD), the stock-trading platform.

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