Palantir Technologies stock had a great 2024, but the new year is starting off rocky for the software company. Palantir stock fell 7.8% to $69.99 and was the worst performer in the S&P 500 on Tuesday as the index dropped 1.

The stock of Palantir Technologies (PLTR, Financial) fell 3% on early trading on Tuesday after Cathie Wood-Ark Invest sold $15 million worth of Palantir shares, or 196,728 shares in total, across various ETFs.

Wood remains a long-time supporter of tech disruptors, but her pivot away from Palantir underscores concerns about its valuation.

FEATURE Palantir Technologies stock fell for a third straight day after Cathie Wood’s ARK Investment Management unloaded more shares of the software company. Palantir had an undeniably good 2024, skyrocketing 340% as enthusiasm for the company’s artificial intelligence platform and highly publicized government contracts drove the stock price higher.

According to a post on X by Ark Invest Daily, the investment management firm unloaded 196,728 shares from various ETFs on Monday, Jan. 6. Palantir has now dropped to 4.2% of the holdings in the ARK Fintech Innovation ETF (NYSEARCA: ARKF) portfolio. This follows multiple large sell-offs in December and November by various ARK ETFs.

On Tuesday, Cathie Wood -led Ark Invest made some significant adjustments to its portfolio. The most notable of these was the sale of shares in Palantir Technologies Inc PLTR -8.64% Get Free Report across multiple ETFs, coupled with a substantial sale of ARK 21Shares Bitcoin ETF ARKB -5.12% + Free Alerts .