Cathie Wood Can't Stop Buying PLTR Stock. Should You Invest While It's Still Below $200?

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  Published in Stocks and Investing on Friday, October 24th 2025 at 13:30 GMT by The Motley Fool

Why Palantir remains on Ark’s radar

Palantir is known for providing software solutions that help governments and enterprises integrate, visualize, and analyze large volumes of data. The company has a diversified revenue mix, with government contracts, commercial clients, and a growing subscription‑based model. In its most recent earnings cycle, Palantir reported a 32 % year‑over‑year revenue increase to $1.7 billion, beating consensus expectations. While the earnings per share (EPS) fell short of the consensus, Ark Invest’s CEO, Cathie Wood, has repeatedly expressed confidence that the company’s data‑science engine will unlock future monetization opportunities.

Wood’s enthusiasm was reflected in a statement to the New York Stock Exchange in early September: “Palantir’s technology is a core part of the future of data‑driven decision making. The long‑term growth trajectory justifies the investment.” The firm’s continued purchases also align with Ark’s broader mandate of backing companies poised to disrupt with advanced technologies such as AI, genomics, and electric vehicles.

The purchase timing and market sentiment

At the time of the purchase, Palantir’s share price was hovering just below $200, down from a high of $250 in the previous year. The stock’s volatility intensified following the announcement that its next quarterly earnings would be released later that month. Some market participants cautioned that the stock’s price was still sensitive to earnings outcomes and macroeconomic concerns. However, Ark Invest’s recent moves suggest that Wood remains unshaken, citing the company's “high‑margin business model” and “continued expansion into new verticals.”

The report notes that Ark’s latest 13‑F filing, released on September 12, shows a 12.9 % increase in PLTR shares compared with the previous filing. That surge translates to a $300‑million increase in the fund’s exposure. The ETF’s net inflows for the quarter reached $2.8 billion, underscoring that the firm’s appetite for high‑growth tech remains robust despite short‑term price pressure.

What does this mean for other investors?

Analysts interpret the Ark Invest purchase as a sign that a “big‑money” investor remains bullish on Palantir, even as the stock’s valuation dips below historical highs. “If a well‑capitalized, research‑intensive fund believes that the upside is worth the risk, it may be a useful indicator for other investors,” one commentator wrote. Others caution that the fund’s holdings can swing significantly in the short term, so the timing of Ark’s purchases may reflect tactical rather than strategic considerations.

Potential investors are advised to look beyond Ark’s buying activity. Palantir’s future earnings will be influenced by the company’s ability to maintain and grow its government contracts, which currently account for 60 % of revenue, and its expansion into the private sector. A successful diversification strategy will reduce the risk associated with any single client. Meanwhile, the company’s subscription revenue is projected to grow at a 20 % CAGR over the next three years, according to the firm’s 2024 forecast.

Links and further reading

The MSN Money article includes a link to the original CNBC story that reported the Ark Invest purchase. The CNBC article, titled “Cathie Wood can’t stop buying PLTR stock, says investor,” provides additional context about Ark’s broader portfolio and the fund’s recent performance. It highlights that Palantir’s 13‑F holdings grew from 11.4 million to 12.9 million shares, a move that increased the fund’s exposure to the company by $200 million. The piece also notes that the fund’s other top holdings include Tesla (15 % of the portfolio), Twitter (5 % of the portfolio), and a growing stake in Cloudflare.

The article also links to Palantir’s investor relations page for the latest earnings report, offering a deeper dive into the company’s financials and quarterly guidance. In that report, Palantir projects a 30 % increase in revenue for the next quarter, driven largely by new government contracts in the defense sector. The firm also announced plans to roll out a new data‑integration platform targeted at mid‑size enterprises, which could broaden its customer base.

Bottom line

Cathie Wood’s continued purchases of Palantir shares suggest that Ark Invest remains confident in the company’s long‑term prospects, even as the stock’s price dips below $200 for the first time in 2022. The move underscores a broader confidence in high‑growth, technology‑driven firms that can leverage data at scale. For investors, Palantir offers a compelling blend of high‑margin revenue streams, a diversified client base, and a clear path to scale its subscription model. Whether this translates into upside depends on the company’s ability to keep its growth rate high and manage macroeconomic risks. Those considering an investment in Palantir should weigh the company’s strong earnings record against the potential volatility inherent in a high‑growth, data‑centric business model.