Palantir Stock- Palantir Stock Is Down at the Moment, But Buy It for Its Long Term Growth
When the Nasdaq index started losing around 2% intra-day late last week, investors should have expected Palantir’s (NYSE:PLTR) sharp drop would follow. PLTR stock cut through its key 50-day moving average, breaking an uptrend. PLTR has traded for just under 200 trading sessions so far, but also trades under its average for the full duration. What happened?
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Palantir stock is a favorite trade of r/WallStreetBets. Other favorites such as GameStop (NYSE:GME) and Clover Health (NASDAQ:CLOV), just to name a few, also lost momentum. Palantir’s valuation historically weighed on shares. A recent insider lockup also pressured the stock, too.
Investors who bought Palantir shares at around $17.50 in May might have reacted to the stock falling to key moving averages. And while valuations like an over 33 times price-to-sales might justify the profit-taking, when is the stock a buy again? The company’s Chief Operating Officer, Shyam Sankar, said the meme stock popularity helped sales. As Reddit’s momentum buying slowed, the stock understandably began to underperform.
Contracts and Partnerships
The software firm announced a new partnership with DataRobot on June 24. The companies partnered to create a custom framework that will give customers “a more nimble strategy for demand forecasting.” The partnership aims to increase customer efficiency by cutting down the time on manual data cleansing and manual modeling. By helping companies save on operating costs, Palantir should drive sales.