Palantir Stock Plunges To 2-Week Lows Following Insider Selling: One-Third Of Retail Says They Are ‘Long And Holding Strong’

Notwithstanding the lackluster performance in the final few sessions of 2024, Palantir stock ended the year with a stellar gain of 340% and was the best performer among S&P 500 companies.

Palantir Technologies, Inc. ($PLTR) shares are down sharply for a second straight session as the highflier faces turbulence in the new year, but retail continues to back the stock.

The high-flying stock has been losing momentum since it hit an all-time high of $84.80 on Dec. 24. 

Notwithstanding the lackluster performance in the final few sessions of 2024, the stock ended the year with a stellar gain of 340% and was the best performer among S&P 500 companies. 

Palantir started the new year on a modestly negative note but bounced back strongly with gains of 6.25% on Friday. The rally has petered out since then. 

On top of the 4.97% decline on Monday, the stock was down 6.30% at $71.14 at last check on Tuesday.

With a 16% drop from its recent high, the stock is fast approaching bear territory.

Monday’s weakness can be blamed on a downbeat assessment issued by Morgan Stanley analyst Sanjit Singh, who viewed the stock’s valuation as unattractive.

The downward move accelerated after separate filings showed executives and directors disposing of shares vested as part of stock awards. 

Also, Cathie Wood’s Ark Invest, through its Ark Innovation ETF ($ARKK), Ark Next Generation Internet ETF ($ARKW) and Ark Fintech Innovation ETF ($ARKF), sold 196,728 Palantir shares on Monday. At Monday’s closing price of $75.92, the firm would have raised roughly $15 million from the sales.

Analyzing Palantir’s technicals, Fund Strat Global Head of Technical Strategy Mark Newton said a move below $72.42 will lead to short-term deterioration. He said the stock would become attractive at the low 60s level.

An ongoing Stocktwits poll showed that roughly two-thirds (66%) said they are ‘long and holding strong’ despite the stock price volatility. 

However, 13% said they were on the sidelines, while 13% responded that they shorted the stock and were waiting for a better entry point. 

Merely 5% said they did swing trading for short-term gains.

The next major catalysts for Palantir stock will likely be any artificial intelligence (AI)-related policy announcement from the incoming Trump administration and the company’s fourth-quarter results, due tentatively in early February.

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