"Ark Invest's Cathie Wood, who's a big investor in disruptive innovators, has been reducing her stake in AI data analytics firm Palantir ( NASDAQ:PLTR) in recent weeks. And a bit of profit-taking at quite a volatile and anxious time certainly does seem wise, especially as Dr. Michael Burry looks to keep those subscribed to his newsletter informed on his views of big tech and his bearish put positions."
"Undoubtedly, Cathie Wood and her line of Ark Invest ETFs are having quite the incredible year, outpacing the market by a wide margin, thanks in part to the AI boom, falling rates, and a hunger for innovative growth ideas. And while I still believe in the long-term growth prospects of Palantir, I think that Cathie Wood's latest trims should ring yet another alarm bell for investors who are up big and fearful of a swift reversal, primarily due to valuation concerns."
"While it's never encouraging to learn of another seller of shares of Palantir, especially as AI bubble calls grow louder, it's important to note that the name still represents quite a sizeable part of the flagship Ark Innovation ETF ( NYSEARCA:ARKK). Arguably, recent selling activity is less of a running for the hills kind of move, and perhaps more of a smart round of ringing the register."
Cathie Wood reduced her stake in AI data analytics firm Palantir in recent weeks amid volatile market conditions. Ark Invest ETFs have outpaced the market this year, aided by the AI boom, falling rates, and demand for innovative growth. Palantir remains a sizable holding in the Ark Innovation ETF despite recent trims. Recent selling may reflect profit-taking rather than wholesale exit, and Ark could increase its position if a deeper decline occurs. Palantir faces technical volatility after an 18% bounce off recent lows. Michael Burry holds bearish put positions and seeks lower prices, while CEO Alex Karp highlights robust AI Platform growth.
Read at 24/7 Wall St.
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