Palantir stock fell for a seventh straight session on Wednesday even as Cathie Wood’s ARK Invest bought $11.2 million of shares, betting the slide in the AI software maker has gone too far.
ARK funds bought 63,638 Palantir shares on Tuesday, November 3. The stock fell 1.65 percent that day to close at $175.40, then dropped another 2.11 percent on Wednesday to $171.70.
Palantir stock has fallen about 9 percent between October 27 and November 4. The decline has come despite strong third-quarter results and an improved annual outlook from the company.
Palantir stock falls for a seventh session
Palantir reported third-quarter revenue of $2.31 billion, up 96 percent from a year earlier and ahead of the $2.17 billion analysts had expected. Adjusted earnings reached $0.44 per share, beating Wall Street estimates, and the company raised its full-year revenue guidance.
The concern is commercial bookings. Palantir closed $2.918 billion in total contract value during the third quarter, up just 6 percent from a year earlier. United States commercial contract value rose 11 percent, against growth of more than 153 percent in the previous quarter.
The slowdown has raised questions about whether bookings can support the company’s rapid revenue growth. The fourth-quarter revenue forecast also points to slower sequential growth than the third quarter delivered.
Valuation is the other worry. Palantir’s trailing non-GAAP price-to-earnings ratio stood at 153.43, far above the sector median of 23.26. A multiple that high leaves little room for weaker growth or an earnings disappointment.
Palantir stock drops despite strong earnings
Wood’s purchase came on the same day Palantir reported its results. The ARK founder has traded the shares actively over the past year, buying back some in June and selling more in August, September and October. She is buying again after the latest fall in Palantir stock.
Wood also sold 12,530 Alphabet shares on Tuesday, valued at $3.5 million, while adding to Palantir. The two trades show where she sees the better value among the large AI names after the latest earnings reports.
Palantir’s full-year 2026 revenue guidance now stands at $8.530 billion to $8.534 billion, above Wall Street’s consensus estimate of $8.22 billion. The company earned an adjusted 44 cents per share in the third quarter, against 41 cents expected by analysts surveyed by LSEG, but Palantir stock kept falling.
Wood adds Palantir stock while analysts stay bullish
Most Wall Street analysts back Wood’s call. BofA Securities analyst Mariana Perez Mora repeated a Buy rating and a $255 price target, saying Palantir’s commercial growth validates its Sovereign AI strategy. She sees rising demand supporting high-margin growth, with the commercial business possibly passing the government business in size.
Goldman Sachs analyst Gabriela Borges kept a Buy rating and a $235 price target, while flagging slower bookings and weaker forward indicators. She said the company remains well placed for Sovereign AI, which could drive the next phase of enterprise AI growth in 2027.
StoneX analyst Yi Fu Lee repeated a Hold rating despite praising the quarter. He pointed to 96 percent revenue growth, strong margins and 148 percent growth in United States commercial sales, along with a 165 percent net dollar retention rate, and called the results ‘another extraordinary quarter.’
Palantir carries a consensus Moderate Buy rating among 25 Wall Street analysts, based on 19 Buy, four Hold and two Sell recommendations in the last three months. The average price target of $221.27 implies about 20 percent upside from current levels for Palantir stock.
The shares soared 340 percent in 2024 and 135 percent in 2025, and they hit an all-time high in the middle of last month. So far this year Palantir stock is down about 3 percent, underperforming the S&P 500 index.
Palantir is not among the top 10 holdings in the Ark Innovation ETF. Wood has bought and sold the shares over the past few years, building the position in 2024 and selling many of those shares in 2025 as the stock climbed.
As of November 3, Wood’s Ark Innovation ETF has delivered a five-year annualised return of minus 8.26 percent, while the S&P 500 returned 10.18 percent annualised over the same period, according to Morningstar data. Wood’s record gives the Palantir stock purchase a mixed backdrop.