Palantir Technologies (NYSE:PLTR) stock dropped quite enough as 7% on Friday morning just after Wall Street analyst lowered his price objective for the data analytics company. The analyst isn’t doubting the company’s quality, but in current atmosphere, value is a hot topic.
Zelnick keeps a hold rating on the stock and says he is positive on software stocks in general, but he has a “strong respect” for macroeconomic mood, according to a note. Given the market’s increased sensitivity to valuations in recent years, the analyst said he is implementing a more holistic approach.
Palantir has proven to be a difficult company for investors to understand. The firm went public slightly above a year ago and saw its stock rise by more than 300 percent in its first few months, only to lose most of those profits in the months since. The firm is a cross between a government contractor and a commercial software provider.
In certain ways, Palantir’s first year and a half as a public business has been a war amongst bulls and bears with how to assess the company. There’s little reason to expect the debate will be resolved any time soon, based on recent activity.
Palantir offers impressive technology, but still trades at far more than 15 times forecast sales, despite the stock’s drop. Even if management is ultimately successful in transforming the company into a significant economic vendor, the process will take time.
Given the overall market’s uncertainties, it’s probable that this stock will continue to decrease in the next weeks and months.
The PLTR stock was down by 5.75% and traded at $13.78 (down by 0.84 points) at 1:27 p.m. ET during today’s trading session. The market capitalization stood at $27.59 billion. The share volume traded for PLTR stock was 50,973,848, much higher than the average share volume of 39,392,788.