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 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 Report (9.92% of assets), Roku  (ROKU) - Get Report (5.78% of assets) and Grayscale Bitcoin Trust  (GBTC) - Get 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.

“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 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.