Palantir Stock Rally Stalls As Cathie Wood's ARK Invest Sells $15M In Shares

Palantir Technologies Inc.‘s PLTR stock price surged 355% over the past 12 months, but the shine may be fading as technical indicators and high-profile moves signal potential turbulence ahead.

Cathie Conundrum?

On Monday, Cathie Wood's investment management firm, ARK Invest, offloaded $15 million worth of Palantir stock, totaling 196,728 shares across its flagship ETFs, including ARK Innovation ETF ARKK and ARK Next Generation Internet ETF ARKW.

While Wood remains a long-time supporter of tech disruptors, her pivot toward Amazon.com Inc AMZN underscores growing concerns about Palantir’s valuation. The sale follows Morgan Stanley's recent downgrade to “underweight,” slapping a $60 price target on the stock despite its astronomical gains.

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Palantir Stock Charts Giving Mixed Signals

Palantir’s technical picture paints a tale of two trends.

Chart created using Benzinga Pro

While the stock's 200-day simple moving average (SMA) at $37.69 screams bullish, shorter-term averages like the eight-day ($77.62) and 20-day ($76.28) SMAs suggest selling pressure.

The moving average convergence/divergence (MACD) indicator, at a bullish 3.16, offers hope, but the RSI of 54.77 keeps sentiment lukewarm.

Market Overhang Or Opportunity?

Palantir's success in U.S. government contracts and the commercial sector bolsters its growth narrative, but analysts remain divided. Jim Cramer, host of CNBC's Mad Money, hinted at adding Palantir stock to his portfolio, offering a contrarian view against the bearish sentiment from Morgan Stanley.

Meanwhile, the stock's recent one-month dip of 4.97% signals caution among traders.

With a valuation as polarizing as its investor base, Palantir stands at a crossroads. Bulls point to long-term momentum and a 50-day SMA of $65.73 providing solid support, while bears focus on recent selling pressure and a frothy price tag.

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