Palantir Technologies, Inc. PLTR witnessed a impressive rally of over 30% following the announcement of its fourth-quarter results and AI opportunity. This surge led to analysts revising their estimates and price targets. Cathie Wood’s Ark Invest capitalized on the company’s rise, significantly increasing its Palantir holdings and demonstrating confidence in the Alex Karp-led company’s disruptive potential.
Ark’s Investment: Through its Ark Innovation ETF ARKK, Ark Next Generation Internet ETF ARKW, and Ark Fintech Innovation ETF ARKF, Ark accumulated 1,967,732 Palantir shares, adding shares worth $43.03 million at Tuesday’s closing price of $21.87. Palantir now makes up a significant portion of Ark’s flagship ARKK exchange-traded fund, with the stock being the 21st largest holding in the ETF.
The surge in Palantir shares has been monumental, with its value in ARKW amounting to roughly $24 million, and $13.3 million in ARKF. In January, Ark’s 13F filing indicated that it held 10.94 million Palantir shares valued at $187.80 million at the end of 2023.
The company’s impressive post-earnings rally reflects an optimistic reception of its fourth-quarter revenue that surpassed expectations, fueled by a 70% year-over-year increase in U.S. Commercial segment revenue.
Moreover, analysts rushed to revise their opinions on the company and its fundamentals following the results. Jefferies upgraded the stock, while other analysts maintained or revised their ratings and price targets.
- Jefferies upgraded the stock from Underperform to Hold and lifted the price target from $13 to $22.
- Wedbush maintained an Overweight rating and upped the price target from $25 to $30.
- Citigroup upgraded from Neutral to Sell and doubled the price target from $10 to $20.
- Raymond James maintained Outperform rating and hiked the price target from $22 to $25.
- Mizuho maintained a Neutral rating and nudged up the price target from $16 to $18.
- RBC Capital maintained an Underperform rating.
Ark Persists With Tesla Buy: As Tesla rebounded on Tuesday, Ark added another chunk of Tesla shares, continuing its Tesla buying spree. Through ARKK, ARKW, and Ark Autonomous Technology & Robotics ETF ARKQ added 16,478 Tesla shares valued at $3.05 million.
ARKK closed Tuesday’s session up 3.32% at $46.70, according to Benzinga Pro data.
Illustration made using Ark Invest photo.
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