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Palantir Soars on Reports ARK Next Gen ETF Bought Shares

Reports say Cathie Wood's ARK Next Generation Internet ETF bought 497,100 shares of Palantir.
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Palantir Technologies  (PLTR) - Get Palantir Technologies Inc. Class A Report shares soared after reports said star money manager Cathie Wood's ARK Next Generation Internet ETF bought 497,100 shares of the data analytics software provider.

Palantir recently traded at $27.24, up 9.29%. It has skyrocketed 186% since its September initial public offering amid investor euphoria for young software companies.

Ark Next Generation recently traded at $158.10, down 1.04%, but has soared 152% over the past year, betting on hot tech-related stocks such as Tesla  (TSLA) - Get Tesla Inc Report (9.92% of assets), Roku  (ROKU) - Get Roku, Inc. Class A Report (5.78% of assets) and Grayscale Bitcoin Trust  (GBTC) - Get Grayscale Bitcoin Trust Report (4.65% of assets).

Wood told Bloomberg last month that she expects to nearly triple unit holders’ money over the next five years. But The Wall Street Journal’s Spencer Jakab was skeptical.

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“That is unlikely,” he wrote. “In fact, similar star managers’ performance has tended not only to be mean-reverting but actually worse-than-average after their runs end.”

On Thursday, Virgin Galactic  (SPCE) - Get Virgin Galactic Holdings Inc Report and other space-related investments blasted off, after ARK Investments filed to launch a space exploration ETF.

While ARK didn't identify which companies it will hold in the space exploration-focused fund, expectations were that Virgin Galactic would be one of them.

According to the filing, ARK’s actively managed ETF will invest 80% in stocks engaged in the investment theme of space exploration and innovation, defined as “leading, enabling or benefitting from technologically enabled products and/or services that occur beyond the surface of the Earth.”

Virgin Galactic recently traded at $31.22, down 5.48%, but has soared 123% over the last year, as investors go gaga over the space race.