Cathie Wood expands her position in Palantir after strong Q2 results

Only hours after Palantir Technologies Inc (NYSE: PLTR) said its revenue jumped 49% in the fiscal second quarter and gave strong guidance for the future, billionaire investor Cathie Wood loaded up on shares of the American software company.

Cathie Wood bought PLTR via Ark Invest

Cathie Wood used Ark Invest to buy 5.6 million shares of Palantir on Thursday at an estimated cost of roughly $139.44 million. Before Thursday’s purchase, only two of the investment firm’s active ETFs had exposure to Palantir. Now, the remaining four also have positions in PLTR.

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All in all, Wood now owns about $730 million worth of Palantir shares in total. Palantir reiterated in its earnings release yesterday that it expects more than $300 million of adjusted free cash flow this year. In comparison, it had forecast only $150 million in the previous estimate.

Shares of the $46.30 billion company closed more than 10% up on Thursday. The stock is down about 1.0% this morning. As part of its future growth strategy, Palantir has been recently expanding investments in SPACs.

“These are companies that we think we will be working with for a very long time. Further, we think that using our product is going to help them win,” said business development head Kevin Kawasaki.

Cathie Wood also sold shares of Alibaba Group

Also on Thursday, Cathie Wood’s Ark Invest sold 8,062 U.S. listed shares of China’s Alibaba Group Holding Ltd worth close to $1.55 million. The NYSE-listed company has tanked about 30% from its year-to-date high of $270 in February, as the United States continued to scrutinise Chinese companies this year.

Before Thursday, Ark Invest, via three of its active ETFs, owned $64.03 million of Alibaba shares, which are down about 2.0% on Friday morning. The news comes more than a week after the Chinese multinational technology company reported its financial results for the first quarter and boosted its share repurchase programme.