The selloff in Palantir Technologies (PLTR) stock is accelerating.
Shares of the data analytics company and U.S. defense contractor are down 8% on Feb. 24, bringing the stock’s losses since the current downturn began on Feb. 18 to 25%. The stock is now officially in a bear market, defined as a decline of 20% or more from recent highs.
The unwinding of PLTR stock began on news that CEO Alex Karp plans to sell $1.2 billion of company stock that he owns, along with reports that the U.S. Defense Department is slashing its budget as much as 40% over the next five years.
How Low Will It Go?
The fall of PLTR stock comes after the share price rose more than 300% over the past 12 months and became a favorite among retail investors. The company’s share price peaked at an all-time high of just under $125 a share on Feb. 18 before quickly unraveling in late trading that day. Palantir’s stock was the best performer in the benchmark S&P 500 index last year.
While the big run-up in PLTR stock led many analysts to urge caution among investors, Palantir has gained a cult following among individuals. Analysts say CEO Karp’s eccentric, outspoken personality and the company’s secretive nature have created interest among retail investors.
Is PLTR Stock a Buy?
Palantir Technologies stock has a consensus Hold rating among 18 Wall Street analysts. That rating is based on three Buy, 10 Hold, and five Sell recommendations issued in the last three months. The average PLTR price target of $91.88 implies 0.88% downside risk from current levels.
