Palantir Technologies, Inc. PLTR experienced a pullback on Friday after an analyst downgraded the stock, yet Cathie Wood’s Ark Invest used the weakness as a buying opportunity.
A Strategic Move: On Friday, Ark Invest’s flagship exchange-traded fund, the Ark Innovation ETF ARKK acquired 777,143 shares of Palantir. Moreover, the firm’s Ark Next Generation Internet ETF ARKW and Ark Fintech Innovation ETF ARKF added 153,662 shares and 100,802 shares, respectively, as per daily trade disclosure from the firm.
Despite the downward trend, 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.
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Meanwhile, Jefferies analyst Brent Thill shifted his view on Palantir shares from “Neutral” to “Underperform.” Thill also slashed the price target from $18 to $13, indicating a potential 19% downside from current levels.
The analyst’s reassessment stemmed from his belief that the stock has surged to unsustainable levels amid the AI fervor, citing a lack of a credible monetization strategy and sluggish demand recovery in its commercial and government businesses in 2024.
Coinbase Liquidation Continues: Ark persisted in its Coinbase Global, Inc. COIN selling spree, offloading another tranche of shares of the cryptocurrency exchange on Friday.
Comprising ARKK, ARKW, and ARKF, the liquidation involved 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 selling spree is attributed mainly to profit taking, having accumulated the stock for most of 2022 and early 2023.
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