PLTR Stock: Why Cathie Wood Has Palantir Falling 5% Today

In the world of growth investing, Cathie Wood has made a name for herself. She’s the growth stock whisperer, having picked up shares that have done much better than even the most optimistic bulls could have dreamed. One such stock that investors have focused in on in Ms. Wood’s portfolio has been Palantir (NYSE:PLTR). Indeed, PLTR stock has done very well for investors since its IPO last year.

A close-up shot of a hand on a screen with the Palantir (PLTR) logo.

Source: Ascannio / Shutterstock.com

However, since hitting a peak of $45 per share earlier this year, PLTR has fallen substantially.

Currently, investors can pick up shares of Palantir for less than $25 apiece. And today’s move of 6% to the downside appears to simply be a continuation of a longer-term trend with this stock.

Let’s take a look at one of the key drivers behind the decline in PLTR stock today.

PLTR Stock Down on News of Cathie Wood Divestiture

Indeed, this downside momentum in PLTR stock has been hard to bear for many retail investors. It appears institutional investors are also starting to lose faith in this big data government contractor.

Yesterday, Ms. Wood sold over 710,000 shares of PLTR stock. Various headlines on this topic have begun to circulate, with investors wondering what this potential selling pressure could mean moving forward. After all, Ms. Wood hasn’t sold her whole position yet. These shares still reportedly make up a sizeable fraction of her total holdings. That said, Ms. Wood’s buys and sells do impact market sentiment among retail investors. Accordingly, it appears this stock is taking a breather today.

Indeed, I find Ms. Wood’s approach to listing her daily trades intriguing. On the one hand, more transparency is generally better in financial markets. However, these disclosures do provide the impetus for investors to overreact. Whether or not it’s determined that today’s move in PLTR stock is an overreaction remains to be seen. However, this is a stock investors should watch closely in the days to come.

On the date of publication, Chris MacDonald did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.


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