Palantir, Cerebras, and Coinbase Stocks Tumble Amid Declining Interest in Cryptocurrencies

Cathie Wood's Ark Invest made several notable moves on Thursday, adding to stakes in Palantir and Coinbase while selling some shares of Cerebras Systems. The stock prices for these companies have seen a significant decline in recent months.

Palantir has been growing its revenue at an accelerating pace, with a 70% increase in the fourth quarter of last year and an 85% jump in the first quarter of this year. Despite this growth, the company's stock price has fallen by nearly half since peaking in November. Palantir is now trading for 74 times its expected earnings for this year and 52 times next year's adjusted profit target.

Cerebras Systems, another AI-related company, saw its stock price more than halve since its initial public offering (IPO) last month. The company posted a 94% revenue increase in its first quarter as a public company, but this was largely due to thinning margins and a high concentration risk. Cerebras has an order backlog of $25 billion, with nearly three-quarters of sales coming from just two clients in the UAE.

Meanwhile, Coinbase Global's stock price also fell by at least 5% on Thursday, reaching a fresh low. The company is struggling due to declining interest in cryptocurrencies, with Bitcoin down 45% over the past year. Revenue for Coinbase has declined by 22% and 31% in its last two quarters, respectively.