Cathie Wood Is Selling Palantir Stock. Should You?

Core Insights - Cathie Wood has made significant adjustments to ARK Invest's position in Palantir Technologies, selling 354,955 shares valued at $57 million while still holding a substantial stake worth $503.8 million, which has generated market speculation [1][2] Company Overview - Palantir Technologies, headquartered in Denver, specializes in advanced data integration and artificial intelligence systems, aiding organizations in transforming large datasets into actionable intelligence through its platforms, Gotham, Foundry, and AIP [4] Market Performance - Palantir's market capitalization is approximately $406.8 billion, reflecting strong investor enthusiasm for its role in the AI sector. Over the past year, PLTR shares have increased by 146.25%, with a 31.21% rise in the last six months, significantly outperforming the Nasdaq 100 Index [5] - Despite the impressive gains, Palantir's stock has recently experienced a decline, trading about 17.8% below its 52-week high of $207.52 and down 15.7% in the past month [5] Valuation Metrics - Currently, Palantir trades at 235.80 times forward adjusted earnings and 92.33 times sales, indicating a substantial premium compared to industry norms and its own historical averages [6] Recent Financial Performance - In Q3 fiscal 2025, Palantir reported revenue of $1.18 billion, a 62.8% year-over-year increase, surpassing analyst expectations of $1.09 billion. Adjusted EPS was $0.21, exceeding the forecast of $0.17 [7]