Cathie Wood Buys $8 Million of CoreWeave Stock and Sells Palantir Shares

TLDR

• Ark Invest bought 132,498 CoreWeave shares, worth about $8.1 million, on Monday.
• Goldman Sachs upgraded CoreWeave to Buy from Neutral and cut its price target to $106 from $139.
• Ark sold 18,349 Palantir shares, worth about $3.6 million, on Monday.
• CoreWeave shares have fallen 30% in October, while Palantir has risen 55% since early August.
• Palantir announced a partnership with Knox Systems on Monday.

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Cathie Wood’s Ark Invest bought more CoreWeave shares on Monday. The firm also sold some Palantir Technologies shares.

Ark bought 102,280 CoreWeave shares through the ARK Innovation ETF. It bought another 30,218 shares through the ARK Next Generation Internet ETF.

CoreWeave, Inc. Class A Common Stock, CRWV

The combined 132,498 shares were worth about $8.1 million at Monday’s closing price of $61.12.

The purchase adds to recent buying. Ark bought 188,665 shares last Wednesday and 192,566 shares last Thursday, worth about $12.4 million and $13.4 million.

Goldman Sachs Upgrades CoreWeave

Goldman Sachs analyst Gabriela Borges upgraded CoreWeave to Buy from Neutral on Monday. She cut her price target to $106 from $139.

Borges said investors may be overestimating CoreWeave’s future cost of capital. She also said they may be underestimating possible gains in investment returns.

Goldman pointed to strong compute pricing. CoreWeave raised prices 25% in July and another 10% in October, while Goldman listed financing costs and demand changes as risks.

Debt remains a concern. Yields on CoreWeave’s 2031 bonds topped 16% last week, and the company has more than $51 billion in debt and obligations.

Max Frumes, global head of distressed and leveraged finance at 9fin, told Reuters that CoreWeave is “absolutely the canary in the coal mine.” He expects more expensive credit and closer investor scrutiny.

CEO Mike Intrator defended the company’s finances in an internal memo. He said its backlog more than covers its debt obligations.

CoreWeave shares have fallen 30% in October. Wall Street rates the stock a Moderate Buy, with 21 Buy ratings, 6 Hold ratings and 2 Sell ratings.

Ark Trims Palantir

Ark sold 15,988 Palantir shares through the ARK Innovation ETF and 2,361 shares through the ARK Next Generation Internet ETF. The 18,349 shares were worth about $3.6 million at Monday’s closing price of $194.15.

The firm has been selling for several days. It sold 31,432 shares last Wednesday and 29,957 shares last Thursday, worth about $6.3 million and $6 million.

Palantir shares have climbed 55% since the company’s early August earnings report. Second-quarter revenue rose 93% from a year earlier.

Goldman Sachs also upgraded Palantir to Buy earlier this month, with a $230 price target.

On Monday, Palantir announced a partnership with Knox Systems to speed up software deployment across U.S. government and defense agencies. Knox supports more than 100 AI and enterprise software applications.

Palantir holds a Moderate Buy consensus rating, with 18 Buy ratings, 4 Hold ratings and 2 Sell ratings. The average 12-month price target of $212.10 implies about 9% upside.