Big data and analytics player Palantir Technologies stock has declined by close to 18% over the last month, underperforming the S&P 500 which remains down by about 5% over the same period. Now, the company has actually seen quite a bit of positive news in recent weeks. Results for the third quarter, published in early November, were stronger than anticipated, with revenue rising 22% versus last year. Moreover, Palantir also won multiple government deals, including a contract renewal with the Centers for Disease Control and Prevention and another contract from the U.K Defense ministry. That being said, investors are likely concerned about the company’s slowing growth rates. Guidance for Q4 2022 points to revenue growth of just about 15%, down from 26% growth in the year-ago period. This is an issue, given that the company is barely profitable and is still valued like a growth stock. Moreover, Palantir’s commercial business could also face some headwinds amid a tough macro environment and rising interest rates.
However, now that Palantir stock has seen a decline of about 18% over the last month, will it continue to decline in the near term, or is a rally imminent? Going by historical performance, there is only a 40% chance of a rise in PLTR stock over the next month. There were 95 instances in the last two years when Palantir Technologies
PLTR
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