Cathie Wood Watch: Ark Sells Palantir Stock, Buys Tesla

Investment manager Cathie Wood, managing director of Ark Investment Management, continues to buy and sell stocks as volatility reigns in the equity market.

In recent days, she was unloading stock from data mining company Palantir Technologies (PLTR) – Get Class A report from Palantir Technologies Inc.. And on Friday, it sold Palantir’s latest holdings in three Ark exchange-traded funds, including flagship Ark Innovation ETF. (ARKK) – Get the ARK Innovation ETF Report. Ark left tiny Palantir positions in its three other funds after Friday’s selloff.

On February 19, Ark offered this comment on Palantir. “Palantir shares fell almost 16% on Thursday. [Feb. 17] after the company released its fourth quarter results,” said Ark.

“While beating revenue expectations with 34% year-over-year growth driven by commercial success in the United States, Palantir reported a significant deceleration in growth in the largest government division, suggesting perhaps a change in government purchasing behavior.

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

Palantir posted a loss in the fourth quarter, penalized by pandemic-related restrictions, particularly in Europe. The stock has fallen 55% in the past six months.

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

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

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