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Cathie Wood Is Betting Big on Palantir (PLTR) Stock


  • Palantir (PLTR) stock rose after Cathie Wood’s funds bought shares.
  • Its Foundry database product is being sold to commercial accounts as an AI system.
  • Wood’s flagship fund is up 27% in 2023.
PLTR stock - Cathie Wood Is Betting Big on Palantir (PLTR) Stock

Source: Poetra.RH / Shutterstock.com

Shares in enterprise software company Palantir (NASDAQ:PLTR) hit a 52-week high despite layoffs at its London office. One reason for this could be that Cathie Wood’s Ark Invest funds purchased shares.

Since May 10, the Cathie’s Ark site, which tracks her funds’ trading, shows her funds buying over 6.2 million Palantir shares. Palantir has about 2 billion shares outstanding.

Palantir opened on May 24 at $12.35 per share, representing a market capitalization of $26 billion. It jumped 6.76% on May 23.

What’s Behind PLTR Stock?

Palantir is primarily a defense contractor, but it has ambitions in the commercial market. It recently developed an artificial intelligence (AI) model for retailer C&A Modas S.A., a Brazil-based fashion group. The model is meant to optimize its supply chain with alerts on restocking of products. It was developed with Palantir’s Foundry product.

Foundry, Palantir’s flagship product, is a proprietary database platform that aims to help non-technical people make operating decisions based on data.

While Foundry is built on database analysis, recent improvements have boosters of the stock now calling it an “AI platform.” Even TV analyst Jim Cramer has recently lauded Palantir.

Palantir was founded 20 years ago, mainly by former Paypal (NASDAQ:PYPL) employees. It drew early support from the Central Intelligence Agency (CIA). The company had revenues of nearly $2 billion last year, 75% more than in 2020, but it is not yet profitable.

Wood, known as the “tech whisperer,” runs a collection of managed exchange-traded funds (ETFs) that focus on cutting-edge technology. The flagship fund, ARK Innovation (NYSEARCA:ARKK), is up 27% in 2023 and 9% over the last year.

What Happens Next?

The success of both ARKK and PLTR stock in 2023 shows that the technology market is coming back. Old tech is being repackaged, and the commercial market is buying it.

On the date of publication, Dana Blankenhorn held no positions in any companies mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

Dana Blankenhorn has been a financial and technology journalist since 1978. He is the author of Technology’s Big Bang: Yesterday, Today and Tomorrow with Moore’s Law, available at the Amazon Kindle store. Tweet him at @danablankenhorn, connect with him on Mastodon or subscribe to his Substack.

Article printed from InvestorPlace Media, https://investorplace.com/2023/05/cathie-wood-is-betting-big-on-palantir-pltr-stock/.

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