Cathie Wood’s Ark Invest made notable changes to its holdings on Tuesday, selling shares of AI-driven data analytics firm Palantir Technologies (PLTR) and eVTOL aircraft maker Archer Aviation (ACHR). These moves come as Palantir stock hit a new all-time high yesterday, and Archer Aviation stock is soaring post-positive Q1 earnings.
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Why Did Wood Sell?
Investors should note that PLTR stock’s surge is fueled by strong earnings, expanding AI capabilities, and growing interest from Middle Eastern investors. Despite this momentum, some analysts warn that Palantir’s valuation is stretched. Thus, Wood’s decision to sell $613,727 worth of shares suggests she may be locking in gains before a potential correction.
Meanwhile, the ARK Innovation ETF (ARKK) sold a more substantial 523,773 shares of Archer Aviation, valued at $4.76 million. The sale came after shares of the company surged 23% on Tuesday, driven by better-than-expected earnings and progress in piloted flight technology.
Wood Loads Up on Biotech Stocks
Wood’s sell-off does not necessarily indicate trouble for these stocks, it could simply be a profit-taking move. While she’s exiting Palantir and Archer, she’s doubling down on biotech, adding Illumina (ILMN), Twist Bioscience (TWST), and CRISPR Therapeutics (CRSP) to her portfolio.
The ARKK ETF notably increased its position in Twist Bioscience, buying 81,131 shares worth around $2.67 million. Also, it added 36,495 shares of ILMN, valued at about $2.94 million. Further, the ARKK fund acquired 53,212 shares of CRISPR for $2 million.
Beyond biotech, Wood’s ARK Next Generation Internet ETF (ARKW) added 34,607 shares of the software development platform GitLab (GTLB), valued at $1.8 million. Moreover, the community-focused social network Nextdoor Holdings (KIND) also saw a smaller increase in ARK’s holdings. The ARKW ETF purchased 177,492 shares valued at roughly $246,713.