Palantir- Who has invested?

 

Cathie Wood’s Ark Investment Management had purchased 1.5 million in additional stock of Palantir during the mid-February dip. Cathie Wood said at the time, “If you’re short-term in your focus, you probably don’t want to invest too much time in Palantir, and that is music to our ears.”

She later remarked that instead of catering to investors with short-term time horizons who are interested in reaping profits and dividends now, Palantir has a much more long-term time horizon by investing a lot into R&D so that they can catch big waves in the future. From what I can understand, Palantir’s current strategy involves around investing in their future and diversifying their clientele beyond just government clients.  It seems that Palantir wants to lead the pack in capturing a large share of the emerging AI market, which is projected to be worth $160 billion by 2026. A remarkable statistic is that average revenue per customer grew by about 41%, while client concentration decreased from 67% to 61%. This shows that Palantir is increasingly diversifying their client pool, while remarkably enough increasing the revenue they earn on average with each client.

 Around early March, Cathie Wood bought enough shares to total 10 million, thus making up 1.12% of their ETF, ARKK (Ark Innovation ETF). Cathie has applied similar strategies of starting small and then gradually snowballing investments into a company with Tesla, perhaps Cathie’s belief in Palantir’s potential is as strong as her belief in Tesla’s. By about the middle of March, Cathie Wood had invested $400 million into Palantir. To be specific, ARKK contains about $280 million in Palantir shares, which makes up about 1.3% of that ETF’s holdings & ARKW (Ark Next Generation Internet ETF) has about $117 million worth of Palantir’s shares which make up about 1.76% of that ETF. RBC (Royal Bank of Canada), a client, increased their holdings by 340% from 170,000 to 740,000 shares. This is a promising showcase of Palantir’s potential as a client who relies on Palantir’s services has considerably increased their holdings of its stock, showcasing that they believe in the company’s future.