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Palantir stock is suffering its worst losing streak since last year.
Michael Nagle/Bloomberg
Palantir
was a big AI winner and then August started. Now its stock is in free fall and could be headed lower.
Palantir stock has fallen 8.75% to $15.55 on Wednesday, its lowest level since November 2022. With that decline, shares are now below their 50-day moving average, at $16.16, for the first time May. A lot of technical damage has been done. It’s broken its uptrend line, which sat around $17, and its first level of support, near $16. Worse still, the stock has fallen for six straight days and is 22% during its losing streak, the worst six-day stretch since May 2022.
It’s an odd move. Palantir stock peaked at $19.99 on Aug. 1, a move that put it up $211% since the start of the year. Palantir also reported earnings on Monday, numbers that initially looked good. It reported a profit of 5 cents a share, in line with analyst forecasts, while raising its revenue guidance. It even announced a $1 billion stock buyback. Analysts, too, seemed to like the numbers. “Profitability is ahead of schedule, FCF is tracking better than expected, there is $3B on the balance sheet, and there is enthusiasm that the company may be eligible for S&P 500 inclusion in the coming quarter,” Raymond James analyst Brian Gesuale wrote on Monday. “We are reiterating our Outperform rating and notching our target to $22.00.” Even some bears raised their price targets.
But revenue growth slowed and sales guidance was raised by only $2 million, and that has the stock falling now. “Stepping back, we view the quarter as mixed, at best,…
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