Palantir’s Stock Rally
Palantir Technologies, Inc. PLTR experienced a remarkable upsurge of over 30% on Tuesday, subsequent to its fourth-quarter results, prompting analysts to revise their estimates and price targets. The surge fueled by the company’s AI opportunity underscores the confidence of Cathie Wood’s Ark Invest in the disruptive potential of the company led by Alex Karp.
Ark’s Accumulation of Palantir Shares
Ark Innovation ETF ARKK, Ark Next Generation Internet ETF ARKW, and Ark Fintech Innovation ETF ARKF collectively amassed 1,967,732 Palantir shares, valued at $43.03 million at Tuesday’s closing price of $21.87.
Ark’s Bullish Stance
Palantir now constitutes 1.84% of Ark’s flagship ARKK exchange-traded fund, positioned at 21st place in the ETF with a roughly $137 million holding. Additionally, ARKW carries around $24 million in Palantir shares, accounting for a 1.58% weighting in the fund. In ARKF, Palantir represents 1.29% of the weighting, equating to $13.3 million.
Analyzing the Importance
Palantir’s report of fourth-quarter revenue surpassing expectations, fuelled by a 70% year-over-year surge in U.S. Commercial segment revenue, has notably influenced investors. The company’s earnings per share aligning with estimates and its in-line 2024 guidance further bolstered this stance. Additionally, the management’s commentary regarding the traction of the company’s AI platform, AIP, among customers, has been well-received. Subsequently, analysts have hastened to reassess the company and its fundamentals post-results.
- Jefferies upgraded the stock from Underperform to Hold and raised the price target from $13 to $22.
- Wedbush maintained an Overweight rating and raised the price target from $25 to $30.
- Citigroup upgraded from Neutral to Sell and doubled the price target from $10 to $20.
- Raymond James maintained an Outperform rating and raised the price target from $22 to $25.
- Mizuho maintained a Neutral rating and nudged up the price target from $16 to $18.
- RBC Capital maintained an Underperform rating.
Ark’s Focus on Tesla
Ark Invest continued its buying spree of Tesla shares, adding 16,478 shares valued at $3.05 million via ARKK, ARKW, and Ark Autonomous Technology & Robotics ETF ARKQ, as Tesla rebounded on Tuesday.
ARKK closed Tuesday’s session up 3.32% at $46.70, as per Benzinga Pro data.
Illustration made using Ark Invest photo.
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