Why Cathie Wood Sold $57 Million in Palantir Stock

ARK Invest, led by Cathie Wood, sold 354,955 shares of Palantir Technologies (PLTR) for about $57 million. The firm still holds a $503.8 million stake afterward. This trim happened amid Palantir’s strong run, with the stock up over 100% year-to-date through late November 2025, per data from TechStock².

Reasons Behind the Sale

TradingView News, citing GuruFocus, points to ARK’s habit of taking profits after rallies. Palantir had climbed sharply, and this sale frees up cash for other bets. It’s not a full exit—ARK keeps skin in the game.

The move fits a bigger rotation. CoinCentral reports ARK dumped $59 million in Palantir (close to the $57 million figure elsewhere) and $38.6 million in AMD to buy $55.8 million of Alphabet, $21.4 million of Meta, $3.8 million of Coinbase, and $7 million of Circle. Read the full trades there. Blockonomi echoes this, calling it profit-taking on Palantir’s multi-year surge from AI government and commercial deals. They detail the shifts.

Biztoc notes the sale via ARKK amid Palantir’s rally, sparking talk on rebalancing. Check their coverage.

Profit after rally: Palantir up 150% in 12 months (TechStock²).
Reallocate to megacaps like Alphabet (up 70% in a year) and Meta.
No bubble fears: Wood said at a Saudi conference she doesn’t see AI in a bubble, per CoinCentral.

Was It a Smart Move?

Palantir’s Q3 2025 crushed it—revenue around $1.18-1.2 billion (up 63% YoY), EPS $0.21 (beat $0.17 estimate), U.S. commercial up 121%, government up 52% (TechStock²). But the stock dropped 12-17% in November after hitting highs, on sky-high valuation: P/E in high-300s, market cap near $400 billion.

TradingView says it looks like rebalancing, not lost faith in Palantir’s data-analytics edge. ARK’s remaining stake backs that. Yet rotating to cheaper giants like Alphabet (nearing $4 trillion cap) hedges valuation risks while staying in AI plays. Blockonomi sees it as active management: cut winners where prices outran fundamentals.

Mixed market reaction—traders eye Palantir’s contracts and growth vs. its premium price.

Lessons for Investors

ARK shows discipline: trim even big winners to avoid overconcentration. Palantir’s volatility (500% five-year return but recent pullback) reminds us rallies don’t last forever. Wood’s pivot to undervalued AI infrastructure (Alphabet, Meta) over pure high-flyers like Palantir stresses diversification within themes.

Hold through noise if you believe in the business, but book gains. Watch Palantir’s Q4 guidance (61% growth) and deal flow for the real story.