A banner with the logo of Palantir Technologies (PLTR) can be seen on the New York Stock Exchange (NYSE) on the day of its IPO on September 30, 2020 in Manhattan, New York City, USA.
Andrew Kelly | Reuters
Palantir stocks fell more than 15% on Wednesday after Morgan Stanley downgraded the stock from equal weight to underweight.
The company said the company trades at a “significant premium” compared to its peers, with shares more than doubling since going public on Sept. 30.
“With the PLTR up 155% since its listing with very little change in fundamental history, the risk / reward paradigm changes decisively negatively for the stock,” wrote Morgan Stanley analysts.
Co-founded in 2003 by technology investors Peter Thiel and Joe Lonsdale, CEO Alex Karp, and others, Palantir provides data analytics software and services to government agencies including the Department of Defense, the Food and Drug Administration, and the intelligence community. It also sells to companies such as aircraft manufacturer Airbus and energy producer BP.
The company reported its first earnings announcement since going public last month. The company announced that its new third-quarter contracts include a $ 91 million contract with the Army, a $ 36 million contract with the National Institutes of Health, and a $ 300 million extension with an Air – and space customers.
“While the strong results of Q320 underscore the continued momentum in the government industry, the company’s accelerated growth and record margins of + 25% represented a slight fundamental increase from original expectations. We believe results have been improving since the third Shares up sharply in Quarter 20 (stocks + 75% yoy over the past 2.5 weeks) are likely related to outside fundamentals, including strong retail long interest pushing strong institutional short interest, “wrote Morgan Stanley analysts.
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