In this article, we discuss the 5 cloud computing stocks to buy according to Cathie Wood. If you want to read our detailed analysis of Wood’s hedge fund and its recent developments, go directly to read 10 Cloud Computing Stocks to Buy According to Cathie Wood.
5. Palantir Technologies Inc. (NYSE:PLTR)
Number of Hedge Fund Holders: 35
An American software company, Palantir Technologies Inc. (NYSE:PLTR) uses a cloud platform, Apollo, which provides a continuous delivery system, powering other software platforms. This cloud platform offers services in over 40 sectors and industries globally.
As of Q3 2021, ARK Investment Management grew its stake in Palantir Technologies Inc. (NYSE:PLTR) by 22%. The company accounts for 2.14% of Cathie Wood’s portfolio. In its recently announced Q3 results, Palantir Technologies Inc. (NYSE:PLTR) reported revenue of $392.1 million, which beat consensus by $5.54 million. Following the company’s earnings beat, Morgan Stanley lifted its price target on the stock to $24 from $22.
As per Insider Monkey’s Q3 data, the smart money is also taking interest in Palantir Technologies Inc. (NYSE:PLTR), as 35 hedge funds tracked by Insider Monkey were bullish on the company, up from 26 in the previous quarter. These stakes hold a consolidated value of $1.63 billion.
Guardian Fund released its second-quarter 2021 investor letter and mentioned Palantir Technologies Inc. (NYSE: PLTR) in it. Here is what the firm has to say:
“The success of the private sector to innovate in order to help people through the lockdowns and to produce vaccines at record speed at scale has been impressive. The fact that almost every public institution was struggling to be effective no matter how hard some of the people worked, shows the fundamental need of the public sector to become data-driven and invest in data infrastructure.
Government institutions have to partner with enterprises such as Palantir to become digitalnative. The public sector will always struggle to attract the most talented engineers as compensations cannot be justified with tax money and therefore this must be a partnership with specialized private enterprises. This is a great opportunity for Palantir especially as it has already shown to be capable of working with demanding and complex public institutions entrusting it to work on the most critical and sensitive matters.
The news section of Palantir’s website gives insight in where new business is coming from. The main opportunity is in enterprise software and the faster onboarding time and increased self-service of clients is a positive sign. We believe Palantir is becoming one of the more important global software companies.
In addition, Palantir has quietly become a significant investor, investing well over USD 200 million in eight companies. Thereby, it is following the lead of companies like Tencent, Alphabet, and Shopify of establishing valuable investment portfolios.”
