TLDR
- Ark Invest bought 132,498 CoreWeave shares worth about $8.1 million on Monday.
- Goldman Sachs upgraded CoreWeave to Buy from Neutral and lowered its price target to $106.
- Ark sold 18,349 Palantir shares worth about $3.6 million on Monday.
- CoreWeave shares are down 30% in October, while Palantir is up 55% since early August.
- Palantir announced a partnership with Knox Systems on Monday.
Cathie Wood’s Ark Invest added to its CoreWeave position on Monday. The firm also reduced its holding in Palantir Technologies.
Ark bought 102,280 CoreWeave shares through its ARK Innovation ETF. Another 30,218 shares went into the ARK Next Generation Internet ETF.
CoreWeave, Inc. Class A Common Stock, CRWV
The 132,498 shares were worth about $8.1 million at Monday’s close of $61.12. Ark also bought 188,665 shares last Wednesday and 192,566 shares last Thursday.
Those earlier trades were worth about $12.4 million and $13.4 million. Ark has now bought the stock in three recent sessions.
Goldman Sachs Upgrades CoreWeave
Goldman Sachs analyst Gabriela Borges upgraded CoreWeave to Buy from Neutral on Monday. She lowered her price target to $106 from $139.
Borges said investors may be overestimating the company’s future cost of capital. She also said they may be underestimating possible improvements in investment returns.
Goldman pointed to strong pricing for computing power. CoreWeave raised prices 25% in July and another 10% in October.
The bank listed financing costs and changes in demand as risks. CoreWeave shares have dropped 30% in October.
Max Frumes of 9fin told Reuters that CoreWeave is “absolutely the canary in the coal mine.” He expects credit to get more expensive and investors to look more closely at AI-linked debt.
Yields on CoreWeave’s 2031 bonds rose above 16% last week. The company has more than $51 billion in debt and obligations.
CEO Mike Intrator said in an internal memo that the company’s backlog more than covers its debt. Wall Street rates the stock a Moderate Buy, with 21 Buy ratings, 6 Hold ratings and 2 Sell ratings.
Ark Reduces Its Palantir Stake
Ark sold 15,988 Palantir shares through the ARK Innovation ETF and 2,361 through the ARK Next Generation Internet ETF. The 18,349 shares were worth about $3.6 million at Monday’s close of $194.15.
The firm also sold 31,432 shares last Wednesday and 29,957 shares last Thursday. Those trades were worth about $6.3 million and $6 million.
Palantir shares are up 55% since the company’s early August earnings report. Second-quarter revenue rose 93% from a year earlier.
Goldman Sachs upgraded Palantir to Buy earlier this month with a $230 price target. Palantir holds a Moderate Buy rating, with 18 Buy ratings, 4 Hold ratings and 2 Sell ratings.
On Monday, Palantir announced a partnership with Knox Systems. The deal aims to speed up software deployment across U.S. government and defense agencies, and Knox supports more than 100 AI and enterprise software applications.
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