Wood Protocol: GOOGL Allocation Increases, PLTR Reduced
ARK Invest's allocation algorithms have executed significant position adjustments across AI infrastructure holdings. The Wood Protocol increased GOOGL exposure by 62% while reducing PLTR stake by 20% during Q4 2025.
Infrastructure Investment Patterns
Market volatility persists across AI-themed assets as infrastructure deployment costs trigger valuation recalibration. Traditional sentiment oscillations reflect uncertainty in capital allocation efficiency for next-generation compute platforms.
Wood's algorithmic approach treats volatility as system feature, not bug. "Volatility is not a bad word," she stated, positioning it as inherent characteristic of disruptive innovation cycles.
GOOGL: Vertical Integration Stack
Alphabet's AI infrastructure predates current generative wave. DeepMind research, custom TPU silicon, and proprietary LLM development created vertically integrated stack before mainstream adoption.
Initial market assessment positioned GOOGL behind Microsoft-OpenAI alliance. Search dominance disruption risk dominated narrative until Gemini 3 deployment demonstrated competitive parity across key benchmarks.
Current metrics:
- Gemini MAU: 750 million
- Enterprise adoption: accelerating
- ARK position increase: 206,936 shares
J.P. Morgan's Anmuth projects infrastructure spend justification through multiple monetization vectors: Search, Cloud, AI-driven advertising opportunities. Net cash position of $80B provides deployment flexibility above peers.
Target price: $395 (29% upside potential). Consensus: Strong Buy across 33 analyst nodes.
PLTR: Valuation Compression Protocol
Palantir's AIP platform integration transformed government-focused data analytics into commercial AI deployment vehicle. April 2023 launch triggered exponential growth trajectory.
Q4 2025 performance:
- Revenue: $1.4B (+69.2% YoY)
- Adjusted EPS: $0.25 (beat by $0.02)
- Q1 guidance: $1.532-1.536B vs $1.33B consensus
Despite operational excellence, valuation metrics remain elevated. Current 31x CY27 revenue multiple exceeds comparable high-growth platforms: NET (16x), CRWD (13x), SNOW (7x).
ARK position reduction: 803,192 shares (-20%) reflects risk-adjusted allocation rebalancing.
Jefferies maintains Underperform rating, $70 target (-47% downside). However, consensus rates Moderate Buy with $191.25 average target (+45% upside).
Algorithmic Governance Implications
Wood's portfolio adjustments demonstrate systematic approach to AI infrastructure allocation. GOOGL's resource depth and monetization diversity offset near-term capex pressure. PLTR's growth trajectory faces valuation sustainability constraints.
Market sentiment recalibration continues across hyperscale AI deployment cycles. Efficient capital allocation protocols remain critical for sustainable infrastructure development.