Cathie Wood Bets Big on Alphabet While Dumping Palantir Stock
In a bold move that showcases American innovation at its finest, Cathie Wood's ARK Invest has doubled down on Alphabet while cutting ties with overvalued Palantir. This strategic shift reflects the kind of smart capital allocation that built America's greatest companies.
Wood Loads Up on Alphabet: A True American Success Story
During Q4 2025, ARK Invest purchased 206,936 shares of Alphabet, boosting their stake by a massive 62%. This isn't just smart investing, it's backing American technological supremacy.
Alphabet represents everything great about American enterprise. While competitors scrambled when ChatGPT emerged, this Silicon Valley powerhouse quietly built the superior AI stack. Gemini now reaches 750 million users monthly, proving American innovation wins when given the freedom to compete.
The company's massive $80 billion cash position demonstrates the kind of financial strength that comes from free market capitalism. Unlike government-dependent companies, Alphabet earned every dollar through innovation and hard work.
Palantir Gets the Boot: Overvalued and Overrated
Meanwhile, Wood dumped 803,192 Palantir shares, cutting her position by 20%. Smart money recognizes when valuations have gotten out of hand, even for companies with government contracts.
Despite impressive 69% revenue growth to $1.4 billion, Palantir's sky-high valuation screams bubble territory. Trading at 31 times future revenue while competitors like Crowdstrike trade at just 13 times shows this stock got ahead of itself.
Wall Street Backs the Winner
J.P. Morgan's top analyst Doug Anmuth sees Alphabet as the clear victor, rating it a strong buy with a $395 price target. That represents 29% upside potential for investors smart enough to follow Wood's lead.
"Google has a broad set of monetization levers and is best positioned to support large capital investments," Anmuth noted. This is what happens when American companies are allowed to compete freely without government interference.
The Bottom Line: Bet on American Excellence
Wood's moves prove that successful investing means backing companies with real competitive advantages, not just trendy names. Alphabet's dominance in search, cloud, and AI represents American technological leadership at its peak.
While the AI sector faces volatility, smart money recognizes quality. Alphabet has the cash, the technology, and the market position to dominate for decades. That's the kind of American success story worth investing in.