Cathie Wood Makes Surprise AI Stock Moves Amid Sell-Off

TLDR

• Cathie Wood’s ARK Invest purchased 188,665 CoreWeave shares worth approximately $12.4 million during Wednesday’s AI stock sell-off.
• ARK reduced its Palantir exposure by selling 31,432 shares worth roughly $6.3 million without exiting its position.
• CoreWeave shares plunged 15.46% as rising bond yields raised fresh concerns about the company’s borrowing costs.
• CoreWeave’s $104 billion revenue backlog faces scrutiny amid heavy debt obligations and growing AI infrastructure spending.
• Palantir’s elevated valuation and recent share rally provide context for ARK’s decision to reduce its holdings.

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Cathie Wood’s ARK Invest bought CoreWeave shares during Wednesday’s AI stock sell-off and reduced its Palantir holding. The trades involved listed technology shares, not contracts traded through U.S. prediction markets.

ARK purchased 188,665 CoreWeave shares, worth about $12.4 million at Wednesday’s closing price. It also sold 31,432 Palantir shares valued at approximately $6.3 million. The disclosures listed additional purchases of Meta and Cerebras shares across several funds that day.

CoreWeave Stock Slumps as Borrowing Costs Rise

CoreWeave shares fell 15.46% to $65.78 on October 14. The decline followed growing concern over the company’s borrowing costs and its spending on AI data centers.

CoreWeave had about $52 billion in debt and lease obligations at the end of June. Second-quarter net interest expense reached $640 million. CoreWeave’s expansion requires funding for new facilities, specialized chips, and long-term leases, even as customers reserve future computing capacity. Its unsecured bond yields recently approached 15%, reflecting falling bond prices.

The company has reported a revenue backlog near $104 billion and said nearly all its 2027 capacity has customers. However, analysts continue to question its funding needs as CoreWeave bond yields rise.

ARK Cuts Palantir Exposure After Share Rally

ARK’s Palantir sale reduced its position rather than closing it. Palantir shares ended Wednesday at $200.97 after gaining more than 60% since August.

Goldman Sachs recently upgraded Palantir to Buy and set a $230 price target. The bank cited demand for AI software among companies and government agencies.

Palantir’s high market valuation remains a focus for investors. The company has reported strong revenue growth, while recent coverage of its Goldman Sachs upgrade described the premium investors pay for its shares.

U.S. Prediction Markets Face Separate Regulatory Dispute

The stock transactions came during a week of wider market uncertainty. U.S. prediction markets, which offer contracts tied to future events, faced a separate debate over government oversight.

Kalshi chief executive Tarek Mansour warned that legal disputes could push trading overseas. His comments followed state challenges to sports-related contracts, detailed in a report on U.S. prediction markets.

ARK’s transactions concerned AI companies, not those event contracts. Its latest filings show purchases in CoreWeave alongside a smaller Palantir position, as investors assess borrowing costs and software valuations.