Palantir Technologies, Inc. PLTR shares pulled back on Friday after an analyst downgraded the stock, and Cathie Wood’s Ark Invest used the weakness as a buying opportunity.
Ark Invest’s Strategem: Ark Invest’s flagship exchange-traded fund, the Ark Innovation ETF ARKK acquired 777,143 shares of Palantir, while the company’s Ark Next Generation Internet ETF ARKW and Ark Fintech Innovation ETF ARKF added 153,662 shares and 100,802 shares respectively, as per trade disclosures from the firm.
Palantir concluded Friday’s session down 1.66% at $15.98, according to Benzinga Pro data. Ark’s total purchases of 1,031,607 Palantir shares are valued at $16.49 million.
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On Friday, Jefferies analyst Brent Thill downgraded Palantir shares from “Neutral” to “Underperform,” and the analyst also reduced the price target from $18 to $13, suggesting roughly 19% downside from current levels.
The analyst predicated the action on his view that the stock has rallied to unsustainable levels while riding on the AI fervor, even as it lacks a credible monetization strategy and has faced a slow demand recovery in its commercial and government businesses in 2024.
Continued Coinbase Liquidation: Ark maintained its sale of Coinbase Global, Inc. COIN shares as it disposed of another portion of shares from the cryptocurrency exchange on Friday.
ARKK, ARKW, and ARKF together liquidated 133,823 shares of Coinbase valued at $20.61 million (based on the stock’s closing price of $153.98). The Wood-led firm’s Coinbase selling spree is attributed mainly to profit-taking as it had built up the stock for most of 2022 and in early 2023.
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