Palantir Jumps After Cathie Wood's Ark Firms Take Stake

Ark Innovation and Ark Next Generation, ETFs managed by Cathie Wood, purchased a total of 6.8 million shares of data-analytics firm Palantir.
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Palantir Technologies  (PLTR) - Get Report shares jumped on Friday after investor Cathie Wood disclosed that her exchange-traded funds bought more than 6 million shares of the company.

Ark Innovation  (ARKK) - Get Report acquired 5.2 million shares while Ark Next Generation Internet  (ARKW) - Get Report purchased another 1.56 million shares. The funds bought a total of 6.8 million shares valued at about $172 million, buying the dip after the data-analytics firm's stock declined. 

The company's stock at last check jumped 13% to $28.56, snapping a six-session losing streak that saw the stock drop 30%. 

Wood appeared on CNBC this week, saying she was pleased with Palantir Chief Executive Alex Karp's focus on spending for growth recently, calling it a "refreshing attitude," according to Business Insider.  

Palantir has become one of the preferred stocks of the infamous Reddit retail investor crowd.

The company was one of the top trending stocks on Reddit's WallStreetBets forum on Thursday, behind only GameStop  (GME) - Get Report according to the Wall Street Journal.

Palantir dropped on Thursday after shares that had been subject to lockup after the company’s Sept. 30 initial public offering were released.

Insiders were permitted to sell 20% of their shares in the direct-listing IPO, and the remaining 80% were opened up for trading Thursday.

The stock more than doubled (up 166%) since its IPO through Thursday. 

Earlier in the week, the Denver company reported its fourth-quarter loss narrowed to 8 cents a share from 29 cents in the year-earlier quarter. Analysts polled by FactSet expected a loss of 3 cents.

Revenue was $322 million, up 40% from a year earlier and ahead of analysts’ consensus forecast of $300 million.