Cathie Wood's Ark ETFs added over 2.6 million shares of Palantir on Wednesday amid falling share prices
- Cathie Wood's ARK Innovation ETF and ARK Next Generation Internet ETF added 2.6 million shares of Palantir on Wednesday.
- At Wednesday's closing price the shares were worth over $62.7 million.
- The move continues a trend of buying the dip in big tech names for ETFs run by the famed fund manager.
Cathie Wood's ARK Innovation ETF (ARKK) and ARK Next Generation Internet ETF (ARKW) picked up a combined 2,658,800 shares of Palantir on Wednesday amid falling share prices.
At Wednesday's closing price of $23.59, the shares were worth roughly $62.7 million.
The move made Palantir the 37th largest holding of the ARK Innovation ETF and the 20th largest holding of the ARK Next Generation Internet ETF.
Palantir's stock has slumped in recent week, after a lockup expiration and a surprise quarterly loss led to considerable insider profit taking at the big data firm. Share prices have fallen over 26% in the past month and a recent tech stock pullback hasn't helped.
The Invesco QQQ Trust Series 1 ETF, which tracks tech names in the Nasdaq, has fallen nearly 10% since the beginning of February. Much of the move down was caused by a bond sell-off that rocked markets last week, something Cathie Wood said she was "very comfortable" with given her funds' long-term bias.
Wood has been using the recent tech rout to 'buy the dip' in many of her favorite names. The fund manager known as 'money tree' doubled down on her Tesla bet (1) (2) amid falling share prices at the EV maker, and now she's taking another bite at Palantir.
Wood's big Palantir buy follows a trend for the ARK Innovation ETF and ARK Next Generation Internet ETF which acquired a combined 6.8 million shares of Palantir in February.
Despite Palantir's recent slide, a number of analysts still believe in the company's prospects. Goldman Sachs analysts last month upgraded Palantir to a buy and placed a $34 price target on the firm after earnings.
Analysts, led by Christopher D. Merwin, CFA, argued Palantir now has a clear path to "sustainable growth" as the company continues to win contracts for their Foundry, Gotham, and Apollo software.
Palantir traded up 4.03% as of 11:27 a.m. ET on Thursday.
