Palantir Fourth Quarter Results Surprises One Financial Pundit

February 22, 2021

I read “Palantir Stock Slides As It Posts a Surprise Loss in Fourth Quarter.” The pundit noted:

Palantir stock has been very volatile this year. It is among the stocks that were been pumped by the Reddit group WallStreetBets. Palantir stock had a 52-week high of $45 amid frenzied buying. However, as has been the case with other meme stocks, it is down sharply from its recent highs. Based on yesterday’s closing prices, Palantir stock has lost almost 30% from its 52-week highs. The drawdown is much lower than what we’ve seen in stocks like GameStop and AMC Theatres. But then, the rise in Palantir stock was also not comparable to the massive gains that we saw in these companies.

Yikes. Worse than GameStop? Quite a comparison.

The pundit pointed out:

Palantir has been diversifying itself away from government business that currently accounts for the bulk of its revenues. This year, it has signed many deals that would help it diversify its revenues. Earlier this month, Palantir announced that it has extended its partnership with energy giant BP for five more years.

Who knew that a company founded in 2003 would have difficulty meeting Wall Street expectation? Maybe that IBM deal and the new US president’s administration can help Palantir Technologies meet financial experts’ expectations?

Search and content processing companies have been worn down by long sales cycles, lower cost competitors, and the friction of customization, training, and fiddling with content intake.

Palantir might be an exception. Stakeholders are discomfited by shocks.

Stephen E Arnold, February 22, 2021

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