Palantir Technologies (PLTR) jumped 16% on Friday after word that a Ark Invest bought an even bigger stake.
Cathie Wood’s ARK Investment bought 5.3 million shares on Thursday as the stock fell after a lockup expiration. The shares were bought through the ARK Innovation ETF (ARKK), according to StreetInsider. Earlier this week, her ARK Next Generation Internet ETF (ARKW) fund bought 1.6 million shares of Palantir, upping its holdings to 4 million shares.
Goldman Sachs (GS) upgraded the stock to a buy from neutral earlier this week, with a $34 price target. That implies another 29% gain from its current price.
Palantir is a near $50 billion technology company that’s seen its share price dip as a lock-up of the remaining 80% of its publicly-traded shares expired. That represents a unique opportunity to invest, especially on the back of the company’s impressive earnings. The company’s impressive opportunities make it a core holding worth investing in for the long run. The lock up dip represents a unique opportunity to invest.
Palantir saw its time to shine in 2020 as companies increasingly moved toward remote work and looked for opportunities to improve their efficiency and operations. The company helped 100 commercial organizations and 10 national governments respond to COVID-19. That allowed the company to make new relations and have the potential to generate valuable contracts.
The company formed numerous new business relationships in 2020, such as with oil companies having a tough year, IBM (NYSE:IBM), and various government entities. Among its trail-blazing operations is its work toward attempting to achieve DoD impact level 6. That would allow it to work on Classified Secret National Security systems and accommodate that industry.
Palantir recently announced its 4Q 2020 earnings highlighting the company’s immense growth and continued opportunity for growth.
Palantir said earlier this week revenue would grow 45% in the current quarter. In the last quarter, venue surged by 40%, to $322 million, beating expectations of $300.7 million.
COVID-19 has forced numerous commercial businesses and governments to re-evaluate how they handle things and most are increasingly realizing that effective data analysis underpins everything they do.
Palantir’s software helps them to solve this at a detailed level they could never do before. The company’s software is useable between multiple customers providing high margins and the company has a substantial growth portfolio ahead of it. We’ll expect that this growth will lead to substantial long-term shareholder returns.
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