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.
“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.”
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.