Cathie Wood’s ARK Investment Management continues to trim holdings of Palantir (PLTR) ahead of the AI-driven data analytics firm’s Q1 earnings, due on May 5. On May 2, ARK Invest disclosed selling $30.7 million worth of Palantir stock. Earlier on May 1, the investor reported a $2.65 million sale of PLTR shares.
For those tracking ARK Invest’s moves, ARK Invest has consistently held PLTR stock in multiple ETFs, showing Wood’s strong belief in its data analytics and AI potential.
Thus, the latest sales appear to be profit-taking, as Palantir stock has gained over 64% year-to-date, partly due to new defense contracts and expanding commercial applications.
ARK Bets Big on Roku, GH, ABNB
While selling PLTR, ARK Invest has increased its positions in other tech and healthcare companies. This shows a shift in capital toward areas with faster growth in the near future.
On May 2, ARK doubled down on Roku (ROKU), buying 369,016 shares worth $24.8 million. With streaming competition heating up, Wood’s bet suggests confidence in Roku’s ability to maintain a strong position.
Another major purchase was Guardant Health (GH), with ARK investing $20.5 million in the oncology-focused biotech firm. This aligns with ARK’s long-term focus on precision medicine and AI-powered healthcare solutions.
Also, Wood bought 49,560 shares of Airbnb (ABNB) valued at $6.1 million. The investment signals optimism in short-term rentals amid a strong travel rebound.
Analysts’ View Ahead of PLTR’s Q1 Earnings
Ahead of Q1 results, analysts expect Palantir to report earnings per share (EPS) of $0.13, up 62.5% from the prior-year quarter. Also, the company’s revenue is expected to increase 35.9% to $862.17 million in the first quarter.
While the projections show year-over-year growth, analysts remain less optimistic heading into Q1. Last week, RBC Capital analyst Rishi Jaluria reiterated a Sell rating on PLTR stock. Also, his price target of $4o implies a 67.8% downside potential from the current level.
Is PLTR a Good Stock to Buy?
Turning to Wall Street, analysts have a Hold consensus rating on Palantir stock based on two Buys, eight Holds, and three Sells assigned in the past three months. The average PLTR stock price target is $89.17, implying a downside potential of 28.25%.
