Palantir Stock News: Will Shares Rebound After 40% Decline?
Palantir stock has been making news headlines since its initial public offering in September of 2020. However, the share price is heading in the wrong direction after a promising start on the market. Is Palantir Technologies (NYSE: PLTR) a good investment or one to watch going forward?
Palantir Stock Overview
Palantir is an American software company that went public on the New York Stock Exchange (NYSE) on September 30, 2020. It’s opening share price was $10. But investors have been keeping a close eye on this company for quite some time.
In fact, an original Palantir IPO was intended for 2019. It fell through. But investors weren’t ready to lose hope.
A year later, that expectation became a reality. Palantir stock went public and fell to $9.50 during its first day on the market. But it quickly gained momentum and took off over the next two months.
The share price rose above $30 at the start of 2021 and hit a record high of $45 on Jan. 27. Everyone began taking notice. Both day traders and long-term investors alike began watching Palantir stock news and updates for a company with a lot of potential.
Unfortunately, investors lightened their interest in Palantir throughout March. In fact, the stock has dropped nearly 40% to $22 a share after a February high of $39.22.
So, why is this happening? Is it a case of market volatility or something more? Let’s take a closer look…
Recent Palantir Stock News
Palantir stock is dipping for a number of reasons. And it’s extremely difficult to point to one specific indicator as the primary problem.
For starters, insiders can now sell shares after the company’s post-IPO lock up expired in February. And, in general, high growth stocks are taking a dip due to a broad range of sell-offs by investors.
To make matters worse, Palantir’s most recent earnings report was nothing to write home about. But one thing stands out above the rest. And that is CEO Alex Fink’s recent comments about short-term investing.
In an interview with CNBC’s Wilfred Frost, Fink said that a short-term focus on Wall Street is “one of the most destructive, corrosive attributes of an otherwise interesting and largely functioning system.”
“We told the Wall Streeters that we will focus on building the long-term health of our company, that we are going to invest in our product development and in our clients, and you just have to battle it out with them,” Fink explained.
Should You Invest in Growth Stocks?
Investors have been high on Palantir for a long time. Even before it hit the market. Yet, CEO Alex Fink’s latest comments suggest it won’t be a good short-term play. And this may be the reason why the share price is taking a hit.
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Growth stocks have always been a staple for investors all over the country. But you may want to keep a close watch on Palantir stock news over the coming months after its recent dip.
About Corey Mann
Corey Mann is the Content Manager of Investment U. He has more than 10 years of experience as a journalist and content creator. Since 2012, Corey’s work has been featured in major publications such as The Virginian-Pilot, The Washington Post, CNN, MSNBC and more. When Corey isn’t focusing on Investment U, he enjoys traveling with his wife, going to Yankees games and spending time with his family.