Why Palantir Stock Dropped 24.3% in April

Motley Fool2022-05-03

What happenedShares of Palantir (PLTR 3.27%) dropped 24.3% in April, according to S&P Global Market Intelligence. The big data analytics and software firm greatly underperformed the S&P 500 Index last...

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Comments

Looyusooi
2022-05-04
Looyusooi
Ok
Chan Yoon Yee
2022-05-04
Chan Yoon Yee
DCA
Cedric77
2022-05-04
Cedric77
Well written article. Good to just wait and see for now. At least for May.
ckmtan
2022-05-04
ckmtan
Great!❤️
手可摘棉花
2022-05-03
手可摘棉花
Stay Away from growth stocks till things stabilize.
Chris Tan
2022-05-03
Chris Tan
US overvalued companies will have significant downside risk with self inflicted record high inflation and supplychain disruptions by provoking Ukraine war. 🏃‍♂️🏃‍♂️🏃‍♂️and forget about the historical trend of no ending in sight upside 🙏🏻🙏🏻🙏🏻

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The big data analytics and software firm greatly underperformed the S&P 500 Index last...</p>\n\n<a href=\"https://www.fool.com/investing/2022/05/02/why-palantir-stock-dropped-in-april/\">Source Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":"PLTR","symbol_name":"Palantir Technologies Inc.","start_time":0,"source_url":"https://www.fool.com/investing/2022/05/02/why-palantir-stock-dropped-in-april/","article_id":"2232270833","we_media_id":null,"thumbnails":[],"rights":null,"url":"https://stock-news.laohu8.com/highlight/detail?id=2232270833","pubTimestamp":1651570080,"columns":[],"sourceInfo":{"source_id":"fool_stock","name":"Motley Fool"},"weMediaInfo":null,"summary":"Unprofitable high-growth stocks are not doing well in the current market environment.","collect":0,"end_time":0,"defaultTopTitle":"fool.com","property":[],"viewcount":null,"language":"en","relate_stocks":{"PLTR":"Palantir Technologies Inc."},"translate_title":"为什么Palantir股票4月份下跌24.3%","themeId":"","isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"PLTR":0.9},"content_text":"What happenedShares of Palantir (PLTR 3.27%) dropped 24.3% in April, according to S&P Global Market Intelligence. The big data analytics and software firm greatly underperformed the S&P 500 Index last month, which was down only 8.8%. It is likely that Palantir was affected by fears over rising interest rates, inflation, and the potential for a recession, which has severely impacted the prices of growth stocks.So whatThere were no material business updates from Palantir in April, so all these price moves come from changes in market sentiment. Last month, inflation continued to run rampant throughout the United States' economy, with the last recorded data point at an 8.5% year-over-year rate. How does this affect the price of Palantir stock? Well, when inflation is high, the Federal Reserve tends to raise interest rates. When interest rates rise, it becomes more attractive to hold U.S treasury bonds and less attractive to hold an expensive growth stock. With inflation running high, Federal Reserve members have stated they plan to quickly raise interest rates in the coming quarters. This has caused many investors to sell high-growth stocks like Palantir.Image source: Getty Images.It also doesn't help that Palantir is highly unprofitable. The company posted a net loss of $520 million on only $1.54 billion in revenue in 2021. But Palantir is growing quickly, with a 41% year-over-year revenue growth rate in 2021, so one might think that losing money is fine, right? This might be true over a long enough time horizon, but that is not how investors think in relation to rising interest rates. In general, rising interest rates make it tougher for companies to fund losses with debt, so they might be nervous when looking at a company like Palantir compared to other stocks on the market, whether Palantir is going to need to raise any money or not.An approximate 25% price decline is never fun to experience. But if you are bullish on Palantir, it is nice to know it is just because of macroeconomic factors and the flow of investor dollars and not because of a fundamental change to the business.Now whatAs of this writing, Palantir trades at 13.4 times its trailing sales, which is close to an all-time low for the stock. With solid double-digit growth, high gross margins, and long-term contracts with the federal government and large corporations, the stock looks increasingly attractive here. If you are confident in Palantir's business and are comfortable weathering any interest rate-induced volatility, now could be a good time to pick up some shares of the stock.","kind":"highlight","is_publish_news":true,"is_publish_highlight":true,"is_publish_live":false,"is_publish_wemedia":null,"editions":null,"column":"","sentiment":"0","news_tag":"","news_rank":0,"symbols":[],"gpt_button":1},"commentList":[{"id":9061232231,"gmtCreate":1651626977453,"gmtModify":1676534938599,"author":{"id":"4100437715079400","authorId":"4100437715079400","name":"Looyusooi","avatar":"https://static.laohu8.com/default-avatar.jpg","vip":1,"crmLevel":3,"crmLevelSwitch":0,"idStr":"4100437715079400","authorIdStr":"4100437715079400"},"htmlText":"Ok","listText":"Ok","text":"Ok","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":0,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/9061232231","repostId":2232270833,"repostType":4,"isVote":1,"likeStatus":false,"favoriteStatus":false,"reportStatus":false,"tweetType":1,"langContent":"EN"},{"id":9061612364,"gmtCreate":1651621602133,"gmtModify":1676534936021,"author":{"id":"4110231205568512","authorId":"4110231205568512","name":"Chan Yoon Yee","avatar":"https://static.laohu8.com/default-avatar.jpg","vip":1,"crmLevel":2,"crmLevelSwitch":1,"idStr":"4110231205568512","authorIdStr":"4110231205568512"},"htmlText":"DCA","listText":"DCA","text":"DCA","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":2,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/9061612364","repostId":2232270833,"repostType":4,"isVote":1,"likeStatus":false,"favoriteStatus":false,"reportStatus":false,"tweetType":1,"langContent":"EN"},{"id":9061879956,"gmtCreate":1651619086161,"gmtModify":1676534934800,"author":{"id":"3575196385895354","authorId":"3575196385895354","name":"Cedric77","avatar":"https://static.tigerbbs.com/e5ee082b05004f20d3486afedee30814","vip":1,"crmLevel":4,"crmLevelSwitch":1,"idStr":"3575196385895354","authorIdStr":"3575196385895354"},"htmlText":"Well written article. Good to just wait and see for now. At least for May.","listText":"Well written article. Good to just wait and see for now. At least for May.","text":"Well written article. Good to just wait and see for now. At least for May.","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":4,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/9061879956","repostId":2232270833,"repostType":4,"isVote":1,"likeStatus":false,"favoriteStatus":false,"reportStatus":false,"tweetType":1,"langContent":"EN"},{"id":9061859539,"gmtCreate":1651617616795,"gmtModify":1676534934349,"author":{"id":"4107590982975840","authorId":"4107590982975840","name":"ckmtan","avatar":"https://community-static.tradeup.com/news/4b0c0b1aeb9fb3f7e9528c962f00637e","vip":1,"crmLevel":2,"crmLevelSwitch":1,"idStr":"4107590982975840","authorIdStr":"4107590982975840"},"htmlText":"Great!❤️","listText":"Great!❤️","text":"Great!❤️","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":1,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/9061859539","repostId":2232270833,"repostType":4,"isVote":1,"likeStatus":false,"favoriteStatus":false,"reportStatus":false,"tweetType":1,"langContent":"EN"},{"id":9061126874,"gmtCreate":1651588581410,"gmtModify":1676534931643,"author":{"id":"3579342217954724","authorId":"3579342217954724","name":"手可摘棉花","avatar":"https://static.tigerbbs.com/eb5d81ca4420febc27175fcd21eb90b2","vip":1,"crmLevel":4,"crmLevelSwitch":0,"idStr":"3579342217954724","authorIdStr":"3579342217954724"},"htmlText":"Stay Away from growth stocks till things stabilize.&nbsp;","listText":"Stay Away from growth stocks till things stabilize.&nbsp;","text":"Stay Away from growth stocks till things stabilize.","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":3,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/9061126874","repostId":2232270833,"repostType":4,"isVote":1,"likeStatus":false,"favoriteStatus":false,"reportStatus":false,"tweetType":1,"langContent":"EN"},{"id":9061130922,"gmtCreate":1651583146356,"gmtModify":1676534930429,"author":{"id":"4100325483048030","authorId":"4100325483048030","name":"Chris Tan","avatar":"https://community-static.tradeup.com/news/234d0c8219838a66f0165bcb29277534","vip":1,"crmLevel":2,"crmLevelSwitch":0,"idStr":"4100325483048030","authorIdStr":"4100325483048030"},"htmlText":"US overvalued companies will have significant downside risk with self inflicted record&nbsp;high&nbsp;inflation and supplychain disruptions by provoking Ukraine war. 🏃‍♂️🏃‍♂️🏃‍♂️and forget about the historical trend of no ending in sight upside 🙏🏻🙏🏻🙏🏻","listText":"US overvalued companies will have significant downside risk with self inflicted record&nbsp;high&nbsp;inflation and supplychain disruptions by provoking Ukraine war. 🏃‍♂️🏃‍♂️🏃‍♂️and forget about the historical trend of no ending in sight upside 🙏🏻🙏🏻🙏🏻","text":"US overvalued companies will have significant downside risk with self inflicted record high inflation and supplychain disruptions by provoking Ukraine war. 🏃‍♂️🏃‍♂️🏃‍♂️and forget about the historical trend of no ending in sight upside 🙏🏻🙏🏻🙏🏻","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":4,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/9061130922","repostId":2232270833,"repostType":4,"isVote":1,"likeStatus":false,"favoriteStatus":false,"reportStatus":false,"tweetType":1,"langContent":"EN"}],"isCommentEnd":false,"newsSizeData":{"likeSize":152,"commentSize":30,"repostSize":0,"favoriteSize":1,"likeStatus":false,"favoriteStatus":false},"APP":{"userAgent":"Mozilla/5.0 AppleWebKit/537.36 (KHTML, like Gecko; compatible; ClaudeBot/1.0; +claudebot@anthropic.com)","isDev":false,"isTTM":true,"deviceId":"web-server-community-laohu8-v3","version":"4.29.3","shortVersion":"4.29.3","platform":"web","vendor":"web","appName":"ttm","isIOS":false,"isAndroid":false,"isTiger":false,"isTHS":false,"isWeiXin":false,"isWeiXinMini":false,"isWeiBo":false,"isQQ":false,"isBaiduSwan":false,"isBaiduBox":false,"isDingTalk":false,"isToutiao":false,"isOnePlus":false,"isHuaWei":false,"isXiaomi":false,"isXiaomiWebView":false,"isOppo":false,"isVivo":false,"isSamsung":false,"isMobile":false},"href":"/m/news/2232270833"}