NEWSLETTER
Wednesday was, well, a very strange trip to Palantir Technologies (Fungus) .
The shares were opened to $ 123.86, they rushed at a maximum of 52 weeks of $ 125.41 at the time of the morning, and then suddenly fell, ending 10% to close at $ 112.06.
After hours, the sale continued, the shares from 4.8% to $ 106.74.
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Two causes for abrupt sale were cited.
- CEO Alex Karp had filed a notice that he could sell 9,975 million shares during the next year. At the regular closure of Wednesday, the shares were valued up to $ 1.2 billion.
- Washington's reports said Wednesday that the Trump administration was going to fire thousands of workers when the Department of Defense, a key palantir client, sought to cut costs.
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But there were probably more behind the sale, including that Palantir's shares had become too expensive and were vulnerable to a liquidation sale. At the close of $ 124.52 on Tuesday, the shares had increased 65% this year.
Thursday's market looks at risk
The sale of Palantir is the worst in case of percentage from a fall of 15.1% in May 2024. It could affect the markets on Thursday. The futures trade had the Standard & Poor's 500, the Dow and the Nasdaq-100 indices that opened more under Thursday.
The shares have increased from 4% to 5% this year, but the markets have found more difficult profits to achieve, partly due to tariff threats and the Trump administration campaign to abruptly reduce government spending.
The S&P 500 had closed in a maximum of 52 weeks on Wednesday. So did the Nasdaq 100. Palantir index, which has a market capitalization of $ 262.8 billion, is a component of both indices.
Palantir, founded in 2003 by Peter Thiel, Stephen Cohen and Karp, is in the data analysis business, and among its first clients was the United States government, looking for information to get ahead of terrorists and other national security problems.
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About 55% of income still comes from US and non -American government entities, and the non -governmental sector is growing rapidly.
Palantir, based in Denver, according to its 10-K presentation before the stock exchange and values commission, has 711 clients and 3,936 full-time employees. Of that staff, 31% work outside the United States
The company will not do business in China or with Chinese companies.
The trio has been friends with Tesla (Tsla) CEO Elon Musk. Thiel is prominent in conservative circles.
Billings to its 20 main clients averaged $ 64.6 million in 2024, 18.3% more than the previous year.
The income in 2024 was $ 2.87 billion, and the net income was $ 466.9 million or 19 cents per share, 29% more than 2023.
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How to know if Palantir is overloaded
The mass sale is important because the large number of shares was too much.
The company's relative force index has been greater than 80 since February 4. RSI provides a snapshot of whether an action or index is increasing too fast. A reading greater than 70 suggests that the stock is increasing too fast. More than 75, the stock is becoming vulnerable. Above 80 indicates vulnerability.
A reading at the lowest 30 means that an action is overene and can be ready to recover.
The registration tools on many financial websites will allow you to see the RSI of an action at any given time, including the acquisition page of Thestreet. Simply go to the Ticker page and move down to advanced graphics, then click indicators, lower indicators and choose RSI.
Palantir has shown a lot of RSI volatility in the last year. It exceeded 84 in November when the actions shot after the elections of November 5. He collapsed a little in early January and began a higher acute movement on January 14.
When the action closed to $ 124.62 on Tuesday, Palantir's RSI was 81 years old and was ready to sell.
The S&P 500 and Nasdaq are higher, but do not show signs of being overwhelmed.
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