Cathie Wood Bails on Palantir: Is the AI Hype Train Derailed?
Cathie Wood's Ark Invest made some interesting moves this week, most notably trimming its Palantir Technologies (PLTR) holdings while simultaneously doubling down on Bullish (BLSH), Peter Thiel's crypto exchange play. Let's dive into the numbers and see if we can make sense of this seemingly contradictory strategy.
Ark sold 38,338 shares of Palantir through its ARK Innovation ETF (ARKK). Now, before we jump to conclusions, it's important to put this in perspective. Palantir's Q3 earnings were undeniably strong: $1.18 billion in revenue against an expected $1.09 billion, and adjusted earnings per share of 21 cents, beating the 17-cent forecast. The real kicker? A 121% year-over-year surge in U.S. commercial revenue, hitting $397 million. Those aren't just good numbers; they're eye-popping. Given that Palantir's stock closed at $207.18 on Monday, that's approximately $7.9 million worth of shares dumped. Not a small chunk of change.
So, why the sell-off? Palantir's momentum is in the 97th percentile, according to Benzinga’s Edge Stock Rankings. Is Wood seeing something the rest of us aren't? Or is this just portfolio rebalancing? One possible explanation is simply profit-taking. Ark might be cashing in on Palantir's gains to reallocate capital elsewhere. Another, perhaps more concerning, possibility is a shift in Ark's investment thesis. Maybe Wood is starting to question Palantir's long-term growth prospects or is concerned about its valuation (which, let's be honest, has been pretty frothy). According to a recent report, Ark Invest sold $7.9 million worth of Palantir stock despite a 121% revenue surge, while increasing its investment in Peter Thiel's crypto venture, Bullish. Cathie Wood Dumps $7.9 Million Worth Of Palantir Stock Despite 121% Revenue Surge — Ark Doubles Down On Peter Thiel's Buzzy Crypto Upstart - Palantir Technologies (NASDAQ:PLTR)
The Bullish Bet: Crypto's Siren Song?
Then we have Bullish. Ark scooped up 238,346 shares across ARKK, Ark Fintech Innovation ETF (ARKF), and ARK Next Generation Internet ETF (ARKW), valued at around $11.9 million at Monday's closing price of $50.26. Bullish, remember, is Peter Thiel's cryptocurrency exchange. It's had a "remarkable IPO," according to reports, with the stock opening "significantly" above its initial offering price. How significant? The reports don't say. Details are scarce, and that's always a red flag.
I've looked at hundreds of these filings, and this particular investment feels… speculative. Crypto is volatile. Crypto exchanges are even more volatile. Are we seeing a genuine belief in Bullish's potential, or is this chasing the next shiny object? And this is the part of the analysis that I find genuinely puzzling. Palantir is a known quantity, a company with real revenue and real clients. Bullish is… well, it's crypto.
Reading the Tea Leaves: What Does It All Mean?
The other trades are less dramatic but still worth noting. Beam Therapeutics (BEAM) saw a significant inflow of Ark investment. Roku (ROKU) and Guardant Health (GH) experienced outflows. These moves suggest a continued focus on biotech and a trimming of positions in other tech sectors. But the Palantir/Bullish dynamic is the real head-scratcher.
Ark's moves, while individually explainable, create a confusing picture. Is Wood betting against the sustainability of Palantir's AI-driven growth? Or is she simply diversifying into what she sees as a more lucrative, albeit riskier, opportunity in the crypto space? It's difficult to say definitively. But one thing is clear: this isn't just about numbers; it's about interpreting a narrative, and that narrative is constantly shifting.
Is the "Smart Money" Getting Smarter, or Just Chasing Hype?
Cathie Wood's moves are always dissected under a microscope, and for good reason. But sometimes, even the "smart money" makes bets that leave you scratching your head. Whether this Palantir dump is a stroke of genius or a misstep remains to be seen. But for now, it raises serious questions about the long-term viability of AI hype and the enduring allure of crypto's siren song.
