In this news, we discuss the Palantir stock sees worst day since going public.
(Reuters) – Shares of Palantir Technologies Inc were on track for their worst day on Wednesday, extending a four-day losing streak and erasing some gains in a stunning rally that had seen the stock more than triple since its closing. debuts in September.
Shares of the U.S. data analytics firm, known for its work with the Central Intelligence Agency and other government agencies, fell 17.6% to $ 21.15 in large volumes.
Investors traded $ 3.9 billion in shares per day on average over the past five days, making Palantir Wall Street the 11th most-traded company in the period, according to data from Refinitiv.
Short bets hit a record 8.2% of Palantir’s float on Wednesday, according to data analytics firm S3 Partners. Those bets peaked at $ 1.6 billion on Friday, the day Citron Research went short on the title, calling it “a full casino.”
“We should expect more short selling on PLTR as the existing shorts continue to build their positions and the new shorts smell blood in the water and join the fray,” said Ihor Dusaniwsky, Managing Director of predictive analytics at S3.
Morgan Stanley, a leading financial advisor on Palantir’s direct listing, downgraded the stock to “underweight” from “equal weight” on Wednesday, citing an overvalued valuation relative to its software peers.
“We believe much of the gradual change from third quarter results is likely related to factors outside of fundamentals, including a strong retail long interest squeezing a strong institutional short interest, ”wrote Morgan Stanley analyst Keith Weiss.
Palantir, currently valued at over $ 39 billion, traded for most of the last month in the dark, up 167%.
In November, Palantir exceeded market expectations for sales and earnings in its first quarter as a public company and raised its revenue forecast for 2020, boosted by major government and aerospace contracts.
Reporting by Munsif Vengattil, Subrat Patnaik and Noel Randewich in San Francisco; Edited by Shinjini Ganguli
Original © Thomson Reuters Corporation