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Cathie Wood Augments Palantir Stake By Whopping $16.5M, Unperturbed By Analyst Downgrading Stock To 'Sell'

Published 06/01/2024, 16:10
Updated 06/01/2024, 17:40
© Reuters.  Cathie Wood Augments Palantir Stake By Whopping $16.5M, Unperturbed By Analyst Downgrading Stock To 'Sell'
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Benzinga - by Shanthi Rexaline, Benzinga Editor.

Palantir Technologies, Inc. (NYSE: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.

What Happened: Ark Invest’s flagship exchange-traded fund, the Ark Innovation ETF (NYSE:ARKK) on Friday bought 777,143 shares of Palantir, and the firm’s Ark Next Generation Internet ETF (NYSE:ARKW) and Ark Fintech Innovation ETF (NYSE:ARKF) added 153,662 shares and 100,802 shares, respectively, daily trade disclosure from the firm showed.

Palantir ended Friday’s session down 1.66% at $15.98, according to Benzinga Pro data. At the price, Ark’s total purchases of 1,031,607 Palantir shares are valued at $16.49 million.

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 experienced a slow demand recovery in its commercial and government businesses in 2024.

Coinbase Liquidation Continues: Ark continued its Coinbase Global, Inc. (NASDAQ:COIN) selling spree as it sold another chunk of shares of the cryptocurrency exchange 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 accumulated the stock for most of 2022 and in early 2023.

Read Next: Cathie Wood’s Ark Stays Bullish On Tesla Despite Short-Term ‘Growing Pains’ As EV Maker ‘Years Ahead’ Of Rivals

Photo: Shutterstock

© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.

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