Palantir stock dropped more than 5% in morning trading.
Cathie Wood led Ark Investment Management on Tuesday shed nearly all of its exposure in the Peter Thiel-backed Palantir Technologies Inc( NYSE:PLTR).
The popular stock-picking firm sold 298 shares —estimated to be worth $3,629— in Palantir, based on Tuesday's closing price.
Palantir stock closed 2.78% higher at $12.2 a share on Tuesday. The stock is down 34.3% year-to-date.
Ark Invest held over 30 million shares in Palantir until mid-February and rushed to dump shares in the data analytics company known for its work with government agencies after it reported dismal earnings.
The popular investment firm shed nearly all of its exposure in just about seven trades.
Prior to the recent sell-off, Ark Invest had been piling up shares in Palantir for months.
Palantir shares fell nearly 16% after it reported fourth-quarter earnings of 2 cents per share, missing the analyst consensus estimate of 4 cents. It had, however, beat revenue expectations.
“Palantir reported a significant deceleration in growth in the larger government division, suggesting perhaps a change in government procurement behavior,” Wood had said in a note.
The St. Petersburg, Florida-based Palantir now holds 200 shares in Palantir after Tuesday’s sale.
Wedbush on Monday named Palantir among cybersecurity companies that are likely to benefit from the significant ramp-up of cyber warfare by Russian nation-state backed organizations over the coming weeks targeting various U.S. and Europe enterprises and government agencies.