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Cathie Wood Watch: Ark Funds Sell ETSY, Palantir

Much of Ark's trading in recent weeks has consisted of buying beaten-down tech stocks, but it's doing some selling too.
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Much of Ark Investment Management CEO Cathie Wood’s trading in recent weeks has consisted of buying beaten-down technology stocks.

But she also has done some selling. And on Tuesday, the investment star unloaded 1,387 shares of online arts and crafts retailer Etsy  (ETSY)  from the ARK Next Generation Internet ETF  (ARKW)

That was worth about $218,500 as of Tuesday’s close and $221,300 in recent trading.

Wood also continued to unload data-mining company Palantir Technologies  (PLTR) . Ark funds shed 298 shares. That was worth $3,630 as of Tuesday’s close and $3,558 in recent trading.

Of the Ark funds that sold Palantir, ARK Autonomous Technology & Robotics ETF  (ARKQ)  has only 100 shares left, Ark Next Generation ETF has only 50 shares left and Ark Space Exploration & Innovation ETF  (ARKX)  has just 50 shares remaining as well.

On Feb. 19, Ark offered this commentary about Palantir. “Shares of Palantir fell nearly 16% on Thursday [Feb. 17] after the company reported fourth-quarter earnings,” Ark said.

“While surpassing revenue expectations with 34% year-over-year growth thanks to success in U.S. commercial, Palantir reported a significant deceleration in growth in the larger government division, suggesting perhaps a change in government procurement behavior," she said.

“Palantir provides software platforms that facilitate data analysis, organization, and storage in the public and private sectors.” 

The company was co-founded by tech-venture-capital titan Peter Thiel.

As for Etsy, Morningstar analyst Sean Dunlop likes it. He puts fair value for the stock at $221, up from its recent quote of $159.82.

“Etsy has carved out an interesting competitive niche, jockeying for e-commerce wallet share across a variety of heterogeneous verticals in the long tail of unbranded products,” he wrote in a commentary last month.

Dunlop said that moving forward, they expect Etsy to:

· “Continue to add unique inventory (recently onboarding a number of Indian sellers);

· “To expand its burgeoning international operations (44% of fourth-quarter gross merchandise volume);

· “To continue to improve search functionality;

· “To expand its suite of seller tools and advertising options, while periodically targeting competitively advantaged tuck-in acquisitions that offer exposure to similarly differentiated end markets."