U.S. markets closed
  • S&P Futures

    3,929.00
    +29.50 (+0.76%)
     
  • Dow Futures

    31,385.00
    +172.00 (+0.55%)
     
  • Nasdaq Futures

    11,956.75
    +116.00 (+0.98%)
     
  • Russell 2000 Futures

    1,786.50
    +14.30 (+0.81%)
     
  • Crude Oil

    110.78
    +0.50 (+0.45%)
     
  • Gold

    1,848.80
    +6.70 (+0.36%)
     
  • Silver

    21.83
    +0.16 (+0.74%)
     
  • EUR/USD

    1.0595
    +0.0034 (+0.32%)
     
  • 10-Yr Bond

    2.7870
    -0.0680 (-2.38%)
     
  • Vix

    29.43
    +0.08 (+0.27%)
     
  • GBP/USD

    1.2533
    +0.0038 (+0.30%)
     
  • USD/JPY

    127.2300
    -0.6200 (-0.48%)
     
  • BTC-USD

    30,111.98
    +626.13 (+2.12%)
     
  • CMC Crypto 200

    672.33
    -1.04 (-0.15%)
     
  • FTSE 100

    7,389.98
    +87.24 (+1.19%)
     
  • Nikkei 225

    26,915.03
    +176.00 (+0.66%)
     

Further weakness as Palantir Technologies (NYSE:PLTR) drops 16% this week, taking one-year losses to 66%

  • Oops!
    Something went wrong.
    Please try again later.
·2 min read
In this article:
  • Oops!
    Something went wrong.
    Please try again later.

Even the best stock pickers will make plenty of bad investments. And there's no doubt that Palantir Technologies Inc. (NYSE:PLTR) stock has had a really bad year. To wit the share price is down 66% in that time. Palantir Technologies may have better days ahead, of course; we've only looked at a one year period. Shareholders have had an even rougher run lately, with the share price down 53% in the last 90 days.

After losing 16% this past week, it's worth investigating the company's fundamentals to see what we can infer from past performance.

View our latest analysis for Palantir Technologies

Because Palantir Technologies made a loss in the last twelve months, we think the market is probably more focussed on revenue and revenue growth, at least for now. Shareholders of unprofitable companies usually expect strong revenue growth. That's because fast revenue growth can be easily extrapolated to forecast profits, often of considerable size.

Palantir Technologies grew its revenue by 43% over the last year. That's definitely a respectable growth rate. Unfortunately it seems investors wanted more, because the share price is down 66% in that time. It may well be that the business remains approximately on track, but its revenue growth has simply been delayed. To our minds it isn't enough to just look at revenue, anyway. Always consider when profits will flow.

The company's revenue and earnings (over time) are depicted in the image below (click to see the exact numbers).

earnings-and-revenue-growth
earnings-and-revenue-growth

Palantir Technologies is well known by investors, and plenty of clever analysts have tried to predict the future profit levels. Given we have quite a good number of analyst forecasts, it might be well worth checking out this free chart depicting consensus estimates.

A Different Perspective

While Palantir Technologies shareholders are down 66% for the year, the market itself is up 5.2%. While the aim is to do better than that, it's worth recalling that even great long-term investments sometimes underperform for a year or more. With the stock down 53% over the last three months, the market doesn't seem to believe that the company has solved all its problems. Basically, most investors should be wary of buying into a poor-performing stock, unless the business itself has clearly improved. While it is well worth considering the different impacts that market conditions can have on the share price, there are other factors that are even more important. Take risks, for example - Palantir Technologies has 4 warning signs we think you should be aware of.

If you like to buy stocks alongside management, then you might just love this free list of companies. (Hint: insiders have been buying them).

Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on US exchanges.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.