Cathie Wood Watch: Ark Sells Palantir Stock, Buys Tesla

Cathie Wood Watch: Ark Sells Palantir Stock, Buys Tesla

Asset manager Cathie Wood had been regularly unloading Palantir. On Friday she sold the last of the software company’s shares held in three Ark funds.

Author:

Dan Weil

Publish date:

Feb 28, 2022 9:49 AM EST

Investment manager Cathie Wood, chief executive of Ark Investment Management, continues to buy and sell stocks as volatility rules the equity market.

In recent days she had been unloading the stock of data-mining company Palantir Technologies  (PLTR) – Get Palantir Technologies Inc. Class A Report. And on Friday she sold the last holdings of Palantir in three Ark exchange-traded funds, including the flagship Ark Innovation ETF  (ARKK) – Get ARK Innovation ETF Report. Ark left minuscule Palantir positions in its other three funds after Friday’s selling.

On Feb. 19, Ark offered this commentary about Palantir. “Shares of Palantir fell nearly 16% on Thursday [Feb. 17] after the company reported fourth-quarter earnings,” Ark said.

“While surpassing revenue expectations with 34% year-over-year growth thanks to success in US commercial, Palantir reported a significant deceleration in growth in the larger government division, suggesting perhaps a change in government procurement behavior.

“Palantir provides software platforms that facilitate data analysis, organization, and storage in the public and private sectors.” The company was co-founded by tech-venture-capital titan Peter Thiel.

Palantir reported a loss for the fourth quarter, hurt by pandemic restrictions, especially in Europe. The stock has slid 55% in the past six months.

Meanwhile, on the buying side Friday, Ark Autonomous Technology and Robotics ETF  (ARKQ) – Get ARK Autonomous Technology & Robotics ETF Report bought 3,927 shares of Tesla  (TSLA) – Get Tesla Inc Report. That stake was valued at $3.2 million as of Friday’s close and about the same in recent trading. The Austin electric-vehicle leader is one of Wood’s favorite stocks, representing the No. 1 holding in Ark Innovation ETF.

Morningstar analyst Seth Goldstein says Tesla shares are overvalued. He puts fair value at $700, compared to a recent quote of $809. “We have reduced our medium-term growth assumptions,” he wrote in a commentary last month. 

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