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
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