Cathie Wood's ARK Laps Up $4M Of Palantir Stock As Rally Extends On AI Wave

Cathie Wood's Ark Invest lapped up more of Palantir Technologies, Inc. PLTR on Monday, as the stock continues to build upward momentum.

What Happened: Wood's Ark Invest, through three of its exchange-traded funds, bought 339,570 shares of Palantir, valued at $4.02 million based on Monday's closing price of $11.84.

The break-up of the purchases is as follows:

• Ark Innovation ETF ARKK: 243,158 shares
• Ark Next Generation Internet ETF AKRW: 42,162 shares
• Ark Fintech Innovation ETF ARKF: 54,250 shares

Ark has been a buyer of Palantir shares since the company reported its first-quarter results on May 8. Between May 10 and Monday, the firm accumulated 6.26 million Palantir shares.

Ark's flagship ARKK fund holds about 5.21 million shares of Palantir, with the stock having a 0.79% weighting in the ETF. Palantir's share of ARKW ETF is 832,883 shares or 0.81% weighting.  In ARKF, the stock makes up 0.42% of weighting by virtue of the 302,147 shares it holds.

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Why It's Important: Since Palantir reported its financial results on May 8, its shares have rallied about 53%, thanks to the better-than-expected quarterly results and the guidance that calls for profitability in each of the remaining quarters.

More importantly, the company's focus on artificial intelligence has struck a chord with investors. The company suggested that its upcoming generative AI tool, AIP, was seeing strong demand.

“The depth of engagement and demand for our new AI Platform is without precedent,” said CEO Alex Karp.

Palantir closed Monday's session 1.11% higher at $11.84, according to Benzinga Pro data.

Read Next: Palantir CEO Alex Karp On AI’s Future Commercial Use: It Will Make ‘People Who Are Winning Much Stronger’