Cathie Wood has been selling shares of Palantir due to high valuation concerns

From Nasdaq: 2025-01-12 03:55:00

Famed investor Cathie Wood, known for Ark Invest’s high-flying Ark Innovation ETF, has been selling shares of Palantir Technologies. Wood originally bought the stock in 2021, exited in early 2022, and re-established a position in May 2023. Palantir executives, including CEO Alex Karp and Chairman Peter Thiel, have been aggressively selling shares, with over $1 billion worth sold. Palantir’s success in AI applications and commercial revenue growth have been notable, but its stock valuation is high, trading at a forward P/S ratio of 36.5 times based on 2025 estimates.

While Palantir’s stock had a strong year in 2024, it now trades at a high valuation, leading to significant insider selling and a potential lack of room for error. The company’s success with commercial customers and revenue growth acceleration will be key to its future performance. Investors should consider Palantir’s current valuation and growth prospects before investing in the stock. The Motley Fool Stock Advisor analyst team has identified 10 best stocks to buy now, but Palantir Technologies wasn’t on the list.



Read more at Nasdaq: Cathie Wood Takes Profits in Palantir. Should Investors Follow Suit?