On Wednesday, Ark Invest, the investment firm led by Cathie Wood, made a notable move by selling a large portion of its stake in Palantir Technologies Inc (PLTR). The ARK Innovation ETF (ARKK) offloaded 62,809 shares of Palantir, worth approximately $2.33 million based on the closing price that day. This move comes just days after Palantir’s inclusion in the prestigious S&P 500 index, replacing American Airlines Group.
This inclusion in the S&P 500 is generally seen as a positive event for a company, as it typically leads to increased exposure to investors and demand for shares as index funds that track the S&P 500 need to acquire those shares. However, despite this positive news, Ark Invest chose to reduce its exposure to Palantir.
Interestingly, the sale occurred on the same day Palantir announced a multi-million-dollar extension of its deal with APA Corporation. This deal, building on a three-year collaboration, introduces new AI capabilities through Palantir’s Artificial Intelligence Platform (AIP) software. While this partnership seems like a positive development, Ark Invest’s decision to sell suggests a strategic shift in its investment approach towards Palantir.
Other notable trades by Ark Invest included the ARK Genomic Revolution ETF (ARKG) selling shares of Veeva Systems Inc (VEEV) and Butterfly Network Inc (BFLY). The ARK Autonomous Technology & Robotics ETF (ARKQ) sold shares of Materialise NV (MTLS) and Vuzix Corp (VUZI). The ARK Next Generation Internet ETF (ARKW) sold shares of Roku Inc (ROKU). On the buying side, the ARK Space Exploration & Innovation ETF (ARKX) purchased shares of Blade Air Mobility Inc (BLDE) while selling shares of Mynaric AG (MYNA).
Ark Invest’s decision to sell its Palantir stake, despite the recent positive news, has generated interest in the market. Investors are likely wondering what factors led to this decision and what it might mean for the future of Palantir.
