Palantir Technologies Stock Is Down More Than 25% Since Its Peak. Is It Finally Time to Buy the Dip?
A high multiple and rampant uncertainty are crushing the stock.
For a while, it seemed Palantir Technologies (NASDAQ: PLTR) could do no wrong, with the stock gaining as much as 1,250% the past two years. Then, investor sentiment took a turn for the worse. The stock plunged as much as 11.9% on Monday. As of 1:38 p.m. ET, the stock was still down 8.1%.
In all, the artificial intelligence (AI) software and data mining specialist has lost roughly 25% over the past five days since reaching a new all-time high early last week. After such a precipitous drop, is it finally time to buy the stock?
A couple of factors are weighing on Palantir stock. The company revealed in a regulatory filing that CEO Alex Karp planned to sell 9,975,000 shares of stock using a 10b5-1 trading plan, liquidating the shares by September. On the day before the decline began, this stock sale would have netted as much as $1.24 billion. Given that much of Karp's pay comes in the form of stock-based compensation, it isn't particularly surprising or troubling that he would be selling off some shares.
