Cathie Wood's Ark Invest Boosts Palantir Holdings After Stocks Surge on Robust Q4 Results

Palantir Technologies, Inc. saw its stock price soar by more than 30% following their impressive fourth-quarter earnings report and growing opportunities in artificial intelligence (AI). This significant rise prompted financial analysts to review and adjust their forecasts and price targets upward for the company.

Ark Invest Capitalizes on Palantir's Growth

Cathie Wood's investment firm, Ark Invest, seized the opportunity to increase its stake in Palantir during the stock's upward movement, pointing to a strong belief in the company's future prospects. Through its various exchange-traded funds (ETFs) – the Ark Innovation ETF (ARKK), Ark Next Generation Internet ETF (ARKW), and Ark Fintech Innovation ETF (ARKF) – Ark Invest purchased a whopping 1,967,732 shares of Palantir. With the stock closing at $21.87 on Tuesday, these shares were valued at approximately $43.03 million.

Palantir now represents 1.84% of the flagship ARKK fund and is ranked 21st in terms of weighting within this ETF, equating to a holding value of about $137 million. The ARKW holds Palantir shares worth close to $24 million with a 1.58% fund weighting. In the ARKF, Palantir shares make up 1.29% with a value of $13.3 million. Earlier in the year, Ark's filings indicated it held Palantir shares valued at $187.80 million.

Why Palantir's Performance Matters

Palantir's strong fourth-quarter results were highlighted by a 70% increase in U.S. Commercial segment revenue year-over-year. Earnings per share met expectations and guidance for 2024 was in line with analyst predictions. Moreover, Palantir's AI platform, AIP, has been gaining traction among customers, adding to investor confidence.

In response to these developments, several analysts revised their ratings and increased their price targets for Palantir:

• Jefferies transitioned from Underperform to Hold and raised the price target from $13 to $22.
• Wedbush kept an Overweight rating while boosting the price target from $25 to $30.
• Citigroup updated from Neutral to Sell, doubling the price target from $10 to $20.
• Raymond James stayed with an Outperform rating and increased the price target from $22 to $25.
• Mizuho kept a Neutral rating with a slight increase in price target from $16 to $18.
• RBC Capital maintained an Underperform rating.

On the same day, as Tesla stocks rebounded, Ark Invest continued its buying streak by adding 16,478 Tesla shares, valued at $3.05 million.

Ark's ETF shares also experienced growth, with ARKK ending the day up 3.32% at $46.70.

Palantir, ArkInvest, Stocks