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Palantir stock sank as much as 14% on Friday continuing its downward spiral since hitting record highs of $39 per share on Jan 27.
The Denver-based big data firm is now down more than 45% in a little over a month.
Palantir's recent lockup expiration that released some 80% of the company's shares to trade on the open market led to significant insider sales which have hurt the stock in recent weeks.
A surprise quarterly loss in the company's fourth-quarter earnings results released in mid-February didn't help either.
And now tech stocks are selling off amid rising Treasury yields as investors rotate out of the highly valued tech sector to more cyclical value names in financials and energy.
Despite the negative news, some institutional investors are using the fall in share prices as a buying opportunity. Two of Cathie Wood's ARK exchange-traded funds added over 2.6 million shares of Palantir on Wednesday.
The purchase followed a February addition of some 6.8 million shares of the big data firm for Wood's ARK Innovation ETF and ARK Next Generation Internet ETF.
Palantir also continues to ink contracts with big names like 3M and IBM.
On Friday the company signed yet another deal, this time with Amazon Web Services to provide Enterprise Resource Planning (ERP) systems "that enables rapid integration and analysis of data" for customers.
Goldman analysts argued Palantir's recent quarterly results showed signs of "sustainable growth" and issued a "buy" rating and $34 price target for the big data firm. The analysts noted the significant backlog of deals in their report, some of which we have seen go through over the last month.
Overall though, analysts have become increasingly bearish on Palantir, often citing its stretched valuation. The company holds three "buy" ratings, three "neutral" ratings, and five "sell" ratings from analysts.
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See Also:
- Warren Buffett didn't mention SPACs, crypto, or meme stocks in his annual letter. Buffett scholar Lawrence Cunningham explains how the billionaire still managed to warn investors about them.
- Morgan Stanley shares 3 hardware stocks to buy as the economy recovers – and explains why the industry is historically the best performer in tech after recessions
- Cathie Wood breaks down why she was 'very comfortable' as the stock market got rocked by last week's bond sell-off — and shares her outlook for what happens after the tech rout
