Cathie Wood's Ark Invest Trims Palantir Again As Peter Thiel Co-Founded Firm's Stock Tumbles Nearly 15% In 2025

In a surprising turn of events, Cathie Wood's Ark Invest has once again trimmed its holdings in Palantir Technologies Inc. (PLTR), the AI-driven software company co-founded by venture capitalist and entrepreneur Peter Thiel. This move comes as Palantir's stock has tumbled nearly 15% in 2025, raising questions about the company's valuation and future prospects.

Ark Invest, known for its bullish stance on innovative technology companies, sold nearly 200,000 shares worth $15 million this week, sending Palantir's stock sliding 6% today. This marks a continuation of Ark's broader sell-off, with Palantir now making up just 4.2% of its Fintech Innovation ETF. The move isn't surprising, as analysts have been raising concerns about Palantir's valuation. Morgan Stanley's Sanjit Singh slapped an "Underweight" rating on the stock, with a $60 price target that's miles below its current price of $71. Hataf Capital recently flagged Palantir's sky-high forward P/E ratio of 200x as "unsustainable."



Peter Thiel, Palantir's co-founder and early investor, has also been cashing in on the hype. Ryan D. Taylor, Palantir's Chief Revenue Officer, exercised options at $4.72 a share but turned around and sold most of them for $73+ each, pocketing $36 million in the process. While some investors might shrug this off as routine, it adds fuel to the narrative that insiders see a ceiling to Palantir's meteoric run.

Meanwhile, Palantir's reliance on U.S. government contracts, such as a $400.7 million deal with the Army, raises questions about revenue stability. Wedbush remains bullish, banking on Palantir's edge in AI and partnerships like its Warp Speed initiative in manufacturing. However, the stock's recent performance suggests that investors may be growing cautious about Palantir's valuation and long-term prospects.

As Palantir's stock continues to face headwinds, investors will be closely watching the company's earnings and strategic moves. With the AI sector poised for growth, Palantir's ability to maintain its competitive edge and deliver on its promises will be crucial in determining its future success. For now, investors should stay tuned for any developments that could impact Palantir's stock price and valuation.