- Palantir(PLTR) has been crushed from its highs, with PLTR stock still down about 60% over the past 12 months.
- In the first quarter, Stanley Druckenmiller doubled his stake in Palantir, then added to it again the second quarter.
- Now a top-10 holding in his portfolio, bulls are looking for a turn.
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Palantir(NYSE:PLTR) is not faring that well on Thursday, down about 3%. PLTR stock has struggled all week, currently down almost 8%. That’s even as Stanley Druckenmiller again added to his long position in the stock.
Investors might assume that a billionaire investor upping their stake is a bullish statement. And itisa bullish statement, particularly when we’re talking about Stanley Druckenmiller, one of the best investors of our time.
According to thelatest Form 13F, Druckenmiller’s family office — Duquesne Family Office — recently upped its position in PLTR stock. Specifically, the firm grew its position by more than 27% to 4.26 million shares. That makes it a top-10 holding in Duquesne’s portfolio. It’s not Druckenmiller’s first notable increase in the stock, either.
In May, Duquesne’sForm 13Fshowed that the firm more thandoubledits position in PLTR stock. That’s quite a bit of confidence from Druckenmiller & Co. considering how poorly the market behaved in the first half of 2022.
Will It Move the Needle for PLTR Stock?
Unfortunately, Druckenmiller keeps increasing his firm’s stake, but PLTR stock is not responding with a bullish reaction. Shares went on a strong rally from the May low, ultimately climbing 80% to last month’s high.
Still, shares are not behaving well, currently down about 20% from last month’s high. A two-day, 19% decline earlier this month didn’t help matters after thecompany reported earnings.
While PLTR enjoyed a decent bounce after that initial pullback, shares are back toward the post-earnings low. The decline came after the company reported a top-line beat, but a bottom-line miss. Worse, guidance for the third quarter and full year came up short of expectations.
Druckenmiller is a legendary fund manager. However, he has a cost basis of roughly $18 a share on PLTR stock as of the end of the second quarter. Meanwhile, the stock is still down about 80% from the all-time high and 61.8% over the past year.
Perhaps there is value down here, buttrading atalmost 10 times this year’s revenue may not entice a lot of investors.
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