Cathie Wood Is Buying the CoreWeave Dip and Selling Palantir
This post may contain links from our sponsors and affiliates, and Flywheel Publishing may receive compensation for actions taken through them.
ARK Invest bought 283,022 shares of CoreWeave (NASDAQ:CRWV) on Thursday, November 12, 2026. The purchase was worth about $16 million, and it came on a day the stock fell 6.86% to $56.60. From the same two funds, ARK sold 58,339 Palantir (NASDAQ:PLTR | PLTR Price Prediction) shares worth about $10 million. Palantir barely moved, dropping 0.48% to $171.58.
ARK has not said why it made the trades, but Cathie Wood’s firm added to a debt-funded AI infrastructure builder after a decline and reduced an AI software winner that trades at a premium price.
What ARK Actually Bought and Sold
Both trades ran through the main ARK Innovation ETF (BATS:ARKK) and a sister internet fund. The November 12 holdings file for ARKK shows about 2,431,528 CoreWeave shares, or 2.37% of the fund, and about 948,590 Palantir shares, or 2.63%.
On the same day, ARK also bought about $8.9 million of Twist Bioscience (NASDAQ:TWST) and sold pieces of several other holdings, so the Palantir sale was one part of a wider rotation. Palantir is still one of ARKK’s larger positions, so the sale was a trim rather than an exit.
CoreWeave’s Dip Came Right After a Post-Earnings Surge
CoreWeave reported third-quarter results on November 10 and closed that day at $48.73. On November 11, it rose 24.71% to $60.77. On November 12, it fell as low as $50.17 before closing at $56.60. That close is still above the pre-earnings level, but the stock was down 27.26% for the month through November 12.
Two reasons were reported for the slide. One was soft guidance from a rival, Neocloud (an AI-focused cloud provider). The other was doubt about support from NVIDIA (NASDAQ:NVDA) after Jensen Huang resigned as its CEO. NVIDIA invested $2 billion in CoreWeave stock in January 2026. CoreWeave’s CEO said he saw “no reason” for the partnership to change, but he said it on November 11, before Huang left.
Sizing Each Trade Against the Business
CoreWeave is valued at about $25.97 billion. Its third-quarter revenue grew 168% to $3.66 billion, and its backlog stands at $132.5 billion. It also plans $37 billion to $39 billion of capital spending and lost $709 million in the quarter, which included $846 million of net interest expense.
The backlog helps lock in future revenue. It does nothing to address the cost of financing all that spending or how much CoreWeave depends on a few buyers. Its top customer generated about 67% of 2025 revenue.
Palantir is valued at about $395.78 billion. Its debt-to-equity ratio is 0.03, its net margin is 36.3%, and third-quarter revenue rose 95.9% to $2.313 billion. The cost of that quality is a price of about 244 times earnings.
On November 12, Barclays cut its CoreWeave price target to $85 from $105, and Argus cut its target to $100 from $150. Both targets are still above the share price. Even so, analysts cut them right after a quarter that beat estimates, which suggests they now see more financing risk.
Key Risks CoreWeave Investors Need to Weigh Now
For investors near retirement, CoreWeave carries significant risk. The company carries heavy debt, and it has an at-the-market program (new shares sold gradually into the market) of up to 35 million shares that could dilute existing holders. Its key supplier also now has new leadership.
ARK itself holds CoreWeave at 2.37% of ARKK. That is small enough for a high-risk fund to handle if the investment goes wrong.
Palantir has a stronger financial profile, even though ARK reduced it. The company expects $4.8 billion to $5.0 billion of adjusted free cash flow for 2026. Its 17.77% drop through November 12 has also cut the price investors pay for that growth.
Keep an eye on NVIDIA’s earnings report on November 17. If CoreWeave ends below $48.73 after that report, it will have given back its entire post-earnings rally, and that would point to deeper concern about its financing. If it closes back above $60.77, the November 12 drop was probably just noise.
Contact [email protected] for any questions or corrections.
Omor Ibne Ehsan is a writer at 24/7 Wall St. He is a self-taught investor with a focus on growth, cyclical, and dividend equities that have strong fundamentals, value, and long-term potential. He also has an interest in high-risk, high-reward investments such as penny stocks.
