Cathie Wood’s ARK Invest continues to capitalize on Palantir Technologies (PLTR) and Tesla’s (TSLA) stock surge, offloading more shares from its ETFs. According to ARK’s trading statement from Friday, November 22, Wood’s Ark Innovation ETF (ARKK) sold shares of both technology giants whose shares have been hitting new milestones recently on favorable news.
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Details of ARKK’s Stock Sale
ARKK sold 73,021 PLTR shares for $4.48 million, while also selling 11,205 TSLA shares valued at $3.80 million. Although these represent a small percentage of the existing stake, the continued sale of these stocks reflects Wood’s intention to leverage the current rally in these shares.
Following the latest sale, Tesla still remains the numero uno holding in the ARKK ETF, with a 15.21% representation of the portfolio. ARKK still holds $968.50 million worth of Tesla stock. Similarly, after the most recent sale, Palantir remains the fifth largest holding in ARKK, with a 5.29% weightage. As of date, ARKK holds PLTR stock worth $337.13 million.
Meanwhile, the biggest purchase on Friday was that of test equipment maker Teradyne Inc. (TER). ARKK bought an additional 76,665 TER shares for $8.09 million, bringing up the total holding to 833,088 shares worth $87.91 million.
Is PLTR a Good Stock to Buy Now?
Palantir stock has more than doubled in the past three months and gained 274.8% so far this year. The solid jump in Palantir’s stock price is attributed to a variety of catalysts such as its role in the booming artificial intelligence (AI) market, accelerated business and revenues, as well as its inclusion in the S&P 500 (SPX) index.
Wall Street remains cautious of PLTR’s rapid stock surge and prefers remaining on the sidelines for now. On TipRanks, PLTR stock has a Hold consensus rating based on three Buys, seven Holds, and six Sell ratings. The average Palantir Technologies price target of $33.73 implies 47.6% downside potential from current levels.
Is Tesla a Buy, Sell, or Hold?
Tesla stock has been on a tear since the results of the U.S. presidential elections. Since November 4, Tesla stock has skyrocketed over 45%.
CEO Elon Musk’s close ties with President-elect Donald Trump could prove a boon for Musk-owned companies. However, the expected impact of the repealing of EV tax credits could be a big headwind for the EV maker.
Analysts have become wary of this inflated valuation and prefer to remain on the sidelines on Tesla stock for now. On TipRanks, TSLA stock has a Hold consensus rating based on 11 Buys, 14 Holds, and nine Sell ratings. Also, the average Tesla price target of $232.64 implies 34% downside potential from current levels. Year-to-date, TSLA stock has zoomed 41.9%.
