Palantir Stock Just Fell 8 Days in a Row. History Says What Followed Its Only 2 Longer Losing Streaks.
Key PointsPalantir's shares closed lower eight sessions in a row through Nov. 5, dropping around 22% along the way.
Palantir Technologies (PLTR) experienced an eight-day losing streak, causing its stock price to plummet from $198.84 to $154.99, a 22% decrease. This brings the AI software giant's stock to 26% below its record close of $198.84 on October 9. Only two other losing streaks in the past have lasted longer - a 10-day slide and a nine-day slide, both followed by a six-month rise in stock price.
However, one year after these periods, Palantir's stock performed vastly differently, with a 60% loss in the first case and a 224% gain in the second. Currently, Palantir's market value is more than 50 times its sales for the last four quarters, a higher multiple than in either of the previous cases. The company has shown impressive revenue growth, with a 96% increase in Q3 revenue to around $2.3 billion, and turned a significant profit with a 47% operating margin in the last quarter.
Despite a slower growth rate in deals closed in the third quarter, management's guidance for the fourth quarter suggests a revenue of about $2.65 billion, implying an 88% growth rate. The author believes Palantir stock is currently worth a look at its current price and suggests building a position slowly, as it has dropped 22% in the last eight days.
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