Cathie Wood Watch: Ark Funds Sell ETSY, Palantir

Much of Ark Investment Management CEO Cathie Wood’s trading in recent weeks has consisted of buying beaten-down technology stocks.

But she also has done some selling. And on Tuesday, the investment star unloaded 1,387 shares of online arts and crafts retailer Etsy  (ETSY) – Get Etsy, Inc. Report from the ARK Next Generation Internet ETF  (ARKW) – Get ARK Next Generation Internet ETF Report

That was worth about $218,500 as of Tuesday’s close and $221,300 in recent trading.

Wood also continued to unload data-mining company Palantir Technologies  (PLTR) – Get Palantir Technologies Inc. Class A Report. Ark funds shed 298 shares. That was worth $3,630 as of Tuesday’s close and $3,558 in recent trading.

Of the Ark funds that sold Palantir, ARK Autonomous Technology & Robotics ETF  (ARKQ) – Get ARK Autonomous Technology & Robotics ETF Report has only 100 shares left, Ark Next Generation ETF has only 50 shares left and Ark Space Exploration & Innovation ETF  (ARKX) – Get ARK Space Exploration & Innovation ETF Report has just 50 shares remaining as well.

On Feb. 19, Ark offered this commentary about Palantir. “Shares of Palantir fell nearly 16% on Thursday [Feb. 17] after the company reported fourth-quarter earnings,” Ark said.

“While surpassing revenue expectations with 34% year-over-year growth thanks to success in U.S. commercial, Palantir reported a significant deceleration in growth in the larger government division, suggesting perhaps a change in government procurement behavior,” she said.

“Palantir provides software platforms that facilitate data analysis, organization, and storage in the public and private sectors.” 

The company was co-founded by tech-venture-capital titan Peter Thiel.

As for Etsy, Morningstar analyst Sean Dunlop likes it. He puts fair value for the stock at $221, up from its recent quote of $159.82.

“Etsy has carved out an interesting competitive niche, jockeying for e-commerce wallet share across a variety of heterogeneous verticals in the long tail of unbranded products,” he wrote in a commentary last month.

Dunlop said that moving forward, they expect Etsy to:

· “Continue to add unique inventory (recently onboarding a number of Indian sellers);

· “To expand its burgeoning international operations (44% of fourth-quarter gross merchandise volume);

· “To continue to improve search functionality;

· “To expand its suite of seller tools and advertising options, while periodically targeting competitively advantaged tuck-in acquisitions that offer exposure to similarly differentiated end markets.”