Cathie Wood’s ARK Invest ETFs (exchange-traded funds) made several notable portfolio adjustments on Monday, October 13, according to daily fund disclosures. The prominent hedge fund manager continued to trim positions in Palantir Technologies (PLTR), Shopify (SHOP), and Brera Holdings (SLMT).
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Is Palantir Stock a Good Investment?
Palantir is a leading AI data analytics company with a large, consistent stream of government contracts. On October 13, the ARK Fintech Innovation Fund (ARKF) sold 3,170 shares of the big data company, totaling about $556,144. Although this was a small sale, it signals Wood’s strategic portfolio adjustment or profit-taking after the stock’s surge. Year-to-date, PLTR stock has gained over 134%, driven by rapid adoption of its Artificial Intelligence Platform (AIP), inclusion in the S&P 500 index (SPX), and substantial government contracts.
However, analysts express caution over the high valuation. On TipRanks, PLTR stock has a Hold consensus rating based on four Buys, 13 Holds, and two Sell ratings. The average Palantir Technologies price target of $156.53 implies 11.7% downside potential from current levels.
Is Shopify Stock a Buy, Hold, or Sell?
The ARKF ETF’s largest trade of the day was the sale of 8,286 shares of Canadian e-commerce platform Shopify, valued at $1.25 million. Wood has steadily reduced her Shopify stake over recent sessions, including selling 18,367 shares (about $3 million) on October 10. Despite these sales, SHOP remains the largest holding in the ARKF fund, with a 9.75% portfolio weight.
Analysts remain divided on Shopify’s long-term outlook. On TipRanks, SHOP has a Moderate Buy consensus rating based on 20 Buys and 14 Hold ratings. The average Shopify price target of $166.31 implies 8.2% upside potential from current levels. Year-to-date, SHOP stock has surged over 44%.
Is Brera Holdings a Good Investment?
Wood also sold a smaller portion of the recently transformed company, Brera Holdings. The ARK Innovation ETF (ARKK) sold 3,914 shares of the digital asset treasury and crypto infrastructure firm. The company is rebranding to “Solmate” to reflect its focus on Solana (SOL-USD), but it also plans to maintain Brera’s existing sports ventures. The company has signed a letter of intent (LOI) with the Solana Foundation for preferred pricing of $SOL.
Since the company announced its rebranding, SLMT stock has rocketed by more than 128% in the past three months, with most gains occurring soon after the announcement.
Ending Thoughts
While these trades represent active portfolio management, it is important to note that they constitute only a small fraction of Cathie Wood’s total holdings in these companies, underscoring that the moves reflect strategic adjustments rather than significant shifts in overall market exposure.