Palantir Technologies’ shares were 2.8% up in the premarket.
David Paul Morris/Bloomberg
Palantir Technologies stock’s post-earnings slump looks set to finally come to an end, or at least pause, on Thursday.
The stock (ticker: PLTR) has fallen close to 16% in the past two days after its third-quarter earnings on Tuesday. The shares were 2.8% up in the premarket.
The company, which provides data analytics software to both commercial and government customers, actually reported better-than-expected sales growth, met expectations on profit and raised its full-year guidance. However, a weaker-than-anticipated quarter for its government business concerned investors and analysts alike.
RBC Capital analyst Rishi Jaluria downgraded the stock to Underperform from Sector Perform and cut his target price from $25 to $19, citing slowing growth in the government sector as a key reason. More broadly, just 22% of analysts covering the stock now have a Buy rating, while 44% think Sell, with the remaining 33% opting for Hold, according to FactSet data.
High-profile stock picker Cathie Wood seems to be in the minority category. Wood’s ARK Invest funds continued to buy the dip on Wednesday, purchasing 1.25 million shares, worth around $29 million, with the majority bought by the ARK Innovation ETF (ARKK). The previous day, ARK’s exchange-traded funds loaded up on around $36 million worth of Palantir shares.
Write to Callum Keown at [email protected]
