Secondly, I felt as though it had gotten ahead of itself slightly, suggesting that you buy a half position and then wait for it to fall back into the teens. Remember, it won’t get to an operating profit until 2022. However, my recommendation came with a couple of caveats.įirst, you should only be buying its stock if you’re comfortable losing your entire investment. In my most recent article about Palantir, I suggested that even though it was on track to generate annual gains of 1,386%, it still was an interesting buy. If you’ve made good profits on the stock and you’re worried about some of the things Zelnick’s concerned about, it might be a good time to cut and run. While it’s not unusual for insiders to take some capital off the table, it’s a reality that investors ought to consider before the company releases its Q4 2020 results, which are expected in mid-February. “We expect significant (Palantir stock) supply to come to market.” “About 80% of shares outstanding will be free to trade on the third trading day after fourth-quarter results,” Zelnick said. The analyst believes that the expiry of Palantir’s lock-up period could lead to a tsunami of selling, knocking PLTR off its pretty little perch, up 293% through Dec. 30 at $10 and finished first-day trading up 31% with 257.1 million shares trading hands. In Palantir’s case, it opened trading on Sep. Unlike a traditional IPO, direct listings don’t sell any shares to the public they merely allow existing investors to offer their holdings to interested buyers. Palantir went public through a direct listing at the end of September with a reference price of $7.25 a share. Initial public offerings (IPOs) have what’s called a lock-up period where insiders are forbidden to sell their shares in the company for a specific number of days, usually 90 or 180 days, and sometimes longer. Ultimately, though, it’s something else that Zelnick mentioned that should have owners of PLTR stock thinking about the fourth-quarter earnings results. If you’re looking for a true business pedigree, Nvidia’s got it over Palantir by a country mile. InvestorPlace’s Bret Kenwell recently included Nvidia in a list of seven tech stocks ready to rally higher. You can buy Nvidia (NASDAQ: NVDA) for 23 times sales. To be exact, it’s trading at almost 50 times sales.
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