Palantir Technologies Inc. shares. Nasdak: PLTR 17 % decreased in two trading sessions. Over the past 18 months, Palantir has been like a boxer who is still suffering from opponents on punches, none of them effect.
However, two news elements have acted in the past two days, such as body strikes on the arrow, and the decline in the price of the arrow wanders in the two investors knees.
The question is whether this is just an expected pause in the bullish story of the company or if this is the time when the bears will move for the knockout strike.
Investors are wrongly investing the stock -based compensation
Two major reasons are given for sale in PLTR stocks. The first came when news appeared, as Alex Carp, CEO of Palantir, has adopted to sell up to 9.975 million shares until September 12, 2025. It will be about $ 1.2 billion at a closing price on Wednesday.
Many investors oppose stock -based compensation (SBC) in favor of KARP and other Palantir employees. For the full year 2024, the company paid more than $ 1.5 billion in SBC.
This can be a way for a company like Palantir to continue to attract higher talents. However, it reduces the company’s shares and provides profits of the principles of accounting generally accepted. For example, in Q4 2024, the GAAP margin for the company was about 1 %, but the modified operating margin was 45 %.
The company’s latest profit report indicated that it will gradually reduce SBC as a percentage of its revenue.
It should also be noted that the new KARP plan came after canceling a plan adopted in December 2023, which allowed sales of 48.9 million shares. In 2024, he sold a total of 40.7 million shares.
Ready -made meals is that although this makes the news, it does not seem to add greatly to the SBC of KARP.
Sell the assumption, not the news
The disclosure of Karp SBC came on the same day that US Defense Minister Beit Higseth announced his directive to the Ministry of Defense (DOD) to get to know 50 billion dollars in the program discounts For the next year.
The assumption is that Palantir, which depends on the United States government for about 55 % of its current revenue, can witness a loss of revenue at a time when the stock is priced for perfection, then sells some investors first and ask questions later.
This assumption has been challenged by Palantir Bull Dan IVES from Wedbush for a long time. IVES explained that “… the unique software approach from Palantir the company will be able to get more IT dollars (IT) in the Pentagon … not less despite the initial reactions in the knee from the street.”
IVES repeated its superior rating on its classification and a $ 120 price on PLTR shares, which indicates two main meals.
First, with the arrow’s recently reaching $ 125, even the most difficult goals, which led to the delay in the decline.
Second, KARP’s SBC plan or discounts in a potential defense budget is not completely lowering the sale. Instead, they provide a comfortable pretext for institutional investors and retail trade to achieve profits – something they were most likely planning to do it anyway.
Now this momentum in favor of bears, the stock can have more fall.
With this in mind, it is important to note that the PLTR stock is still 33.6 % in 2025 and more than 330 % in the past 12 months. Both numbers make it one of the best technology stocks.
Is this the beginning of a longer direction?
If you are trading, you are already outside the stocks. And if you are a long -term investor, this correction has not reached the frightening stage … until now.
But what do you do if you enter the stocks recently or not yet?
Although it is easy to say and difficult to do, the best advice is to allow this sitting for a few days. Any traditional and objective PLTR inventory, which means that when it begins to roll, it can have a long way, especially with the daily trading volume, its average doubles almost.
Currently, investors may want to closely see the shares on the 83 -dollar sign. This is where it was before the company’s profit report.
The shares are launched higher since that point, which could be the extent of decrease. However, if it decreases to this level, this decrease will constitute about 33 %, which is likely to be sufficient to obtain the long -term retail investors interested in adding shares.
This type of decrease in the next few trading sessions can still happen, which will be difficult for many stomach investors.
This is the risks and rewards-from high-growth stocks such as Balnter.
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