This article first appeared on GuruFocus.
Palantir Technologies (NASDAQ:PLTR) is facing fresh scrutiny over the pace of new business growth after Cathie Wood's ARK Invest reduced its position in the software company, selling 2,107 shares through the ARK Blockchain & Fintech Innovation ETF.
The transaction was worth about $355,704, based on Tuesday's closing price, according to ARK Invest's Tuesday trading disclosures.
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The sale followed Palantir's third-quarter results, which exceeded headline analyst estimates but included slower growth in measures tied to future contracts. Total contract value growth eased to 6% from 49%, while growth in U.S. commercial contract value slowed to 11% from 153% in the previous period.
Those figures could draw investor attention because contract activity offers an indication of potential future revenue. The slowdown may complicate the outlook for a stock whose valuation reflects high expectations for continued expansion.
Direxion's Ryan Lee said Palantir entered earnings priced to perfection, pointing to the pressure created by elevated expectations. ARK's disclosed sale does not establish its investment rationale, but it adds to the focus on whether Palantir can sustain customer commitments and convert demand into future growth.
