Why did shares of Palantir Technologies tumble down recently?

18 Oct 2021

By Stephen Ong, Senior Account Executive, Phillip Futures

Palantir Technologies (PLTR) creates and implements intelligence software platforms which serves in counter terrorism analysis, investigations and operations for its customers in the United States. However, many tech stocks including PLTR are trading lower due to a rise in bond yields, which affected growth stock valuations.

The 10-year Treasury yield spike to high of 1.508% on Monday 4 October 2021, after the Federal Reserve spoke on reducing its current quantitative easing policy.

PLTR was trading about 4.75% lower at $23.17 per share on Monday, 4 October 2021. PLTR reached a 52-week high of $45 and tested a 52-week low of $8.90.

Palantir Stock Analytics (source: Refinitiv)

Market Cap$45.2 billion
Price/Earnings (P/E)N/A
Price/Book21.69
EPS TTM (USD)-0.74
Price/Sales39
Gross Margin %71.03
Net Margin %-95.14
Operating Profit Margin (TTM) (%)-95.2
52-week low$8.90
52-week high$45.00
52-week Return %151.84
Average Wall Street rating and price targetHOLD $24.67

PLTR stock news:

The latest set of results had demonstrated that PLTR has been acquiring a constant flow of new customers with its recent announcement that on Monday, the National Institutes of Health’s (NIH) National Center for Advancing Translational Sciences (NCATS) has awarded PLTR with a contract worth $59.5m over two years. Nonetheless, a report from Reuters on Friday indicated that PLTR may lose a contract with US Immigration & Customs Enforcement.

PLTR stock analysis:

The bearish double-top formed on 23 September is still in place which confirms that PLTR could be in a midst of price reversal and support at $22.80 may temporarily stall the current price slide. Apparently, last Friday’s price action has not affected the current bearish trend and PLTR may see further downward price movement.

PLTR stock is also now below the hourly 200-day exponential moving average and with oscillator like RSI , Stochastic well below the overbought zone, PLTR short-term trend remains bearish. The next major support is at $20.55, which is the low on 19 July this year.

So, what is your opinion on Palantir stock? Are you bullish or bearish? Do you know you can profit from the stock regardless of the direction of the share price by trading it with Contracts For Difference (CFDs)?

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Stephen Ong is a Senior Account Executive with Phillip Futures. With over 20 years of experience in the CFD, Forex, and Futures markets, he offers actionable financial insights on multiple asset classes and how best to implement a successful trading plan on market view.

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