One of the stocks that has been making a number of headlines lately has been Palantir (NYSE:PLTR). Indeed, this Peter Thiel company has seen some impressive upward momentum of late. Today, PLTR stock is up nearly 8%. And over the past month, shares of Palantir are approximately 20% higher. These moves appear to be marking a reversal for investors who have seen this stock drop by more than 40% from its peak earlier this year.
Palantir is a very unique company in so many ways. As we pointed out yesterday, Palantir is focused on creating value by doing things other companies are unwilling or unable to do. The company’s investment in eight special purpose acquisition companies (SPACs) struck the market by surprise. Additionally, Palantir’s move to buy $50 million worth of gold bars also stood out as an intriguing, yet scary, investment.
Indeed, speculation over whether Palantir’s management team sees a black swan event on the horizon has swirled. This is a company with a management team that thinks like no other. Accordingly, it’s unsurprising to see a significant amount of retail investor interest in PLTR stock.
That said, there’s another catalyst driving PLTR stock today. Let’s dive into why investors are buying into Palantir on this $11.4 million catalyst today.
Cathie Wood Giving PLTR Stock a Boost
Today, a number of reports have pointed out that Ark Invest founder Cathie Wood has been buying Palantir heavily. Yesterday alone, Ark Invest picked up more than 476,000 shares, totaling approximately $11.4 million. That’s a decent chunk of change, and investors pointing to a potential reversal are viewing Ms. Wood’s moves as strong buy signals.
Currently, Ark Invest owns 35.5 million shares across its six exchange-traded funds (ETFs). These are estimated to be worth more than $870 million and make PLTR stock one of the ETF manager’s largest holdings. For retail investors, the continued buying in PLTR stock post-dip has provided confidence in this trade. Additionally, some investors may take comfort in knowing Palantir is diversifying its cash holdings into safe, alternative asset classes.
Where this stock will go from here is unknown. However, investors appear to like how the tea leaves are lining up right now. That said, as with all speculative stocks driven by heavy retail buying, investors can expect volatility on the horizon. Invest accordingly.
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.
