This article first appeared on GuruFocus.
Cathie Wood’s ARK fund sells about $10 million of Palantir Technologies (NASDAQ:PLTR) stock, moving 58,741 shares on Thursday.
The trade follows a 2025 rally that lifted PLTR about 165% for the year, although the shares have fallen roughly 4.6% over the past three months.
The sale spotlights a core tension: Palantir’s AI-driven revenue gains and rising margins versus a valuation that trades well above most software peers.
Analysts remain divided. Truist initiated coverage with a “Buy” and a $223 price target, calling the company a best-in-class AI asset. Jefferies and RBC keep Sell ratings, warning of material downside. Raymond James reiterates a Hold, noting the stock looks priced for perfection.
For investors, the message balances growth potential against stretched multiples. Continued international expansion and sustained revenue momentum would validate upside, while any slowdown could expose significant risk. Short-term moves may reflect portfolio rebalancing more than a change in the long-term thesis.
Investors watching PLTR should track quarterly revenue guidance, contract wins and margin trends, and consider valuation sensitivity if macro growth or defense spending shifts carefully.