Why Palantir Stock Is Down By 12% Today

Palantir Stock Dives After Quarterly Report

Shares of Palantir gained strong downside momentum after the company released its quarterly results.

Palantir reported revenue of $432.9 million and adjusted earnings of $0.02 per share, beating analyst estimates on revenue and missing them on earnings. The company stated that it added 34 net new customers in the fourth quarter of this year.

In the first quarter of 2022, the company expects to report $443 million in revenue. Palantir also expects an adjusted operating margin of 23%.

The stock market reacted nervously to the report, and Palantir stock was down by 12% during today’s trading session.

What’s Next For Palantir Stock?

The market is merciless to tech stocks that miss expectations, and Palantir serves as another example of the current market sentiment.

The recent increase in Treasury yields has put significant pressure on the tech segment as traders have suddenly focused on the financials of the growth stocks.

Analysts expect that Palantir will report earnings of $0.2 per share in 2022, so the stock is trading at more than 60 forward P/E, which is expensive. I

t should be noted that Palantir stock has already declined from the highs at $45, which were reached at the beginning of 2021, to the $12 level, but it remains to be seen whether speculative traders will be ready to buy the pullback.

The market sentiment remains negative towards richly-valued stocks, and the company has just missed earnings estimates. In case the general market sell-off continues, Palantir stock will have a good chance to settle below the $12 level and move towards the psychologically important $10 level.

To break the trend, Palantir must come up with positive catalysts, which will be a challenging thing to do in the upcoming weeks as the company has just released its quarterly report and may have no big news to share in the near term.

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