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Palantir Technologies Stock Plummets on Dismal Outlook

Options volume is running at 5 times the intraday average

Deputy Editor
Aug 8, 2022 at 11:01 AM
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Palantir Technologies Inc (NYSE:PLTR) stock is staging a post-earnings slide this morning, down 13.3% at $9.92 at last glance, after its mixed second-quarter report. The software name posted a worse-than-expected loss of 1 cent per share, while revenue beat analyst estimates. What is mostly weighing on the shares today, however, is the company's lowered full-year and current-quarter revenue forecasts, after the timing of its government contracts became "uncertain."

Today's drop has PLTR on track to snap an eight-day win streak, after the security closed above the 150-day moving average for the first time since November over the last session. Now, the shares have pulled back to a trendline connecting higher lows since its May 12, record low of $6.44. Year-to-date, the equity is down 45%. 

Analysts have yet to chime in after the event, though the majority lean bearish. Of the nine in coverage, six carry a tepid "hold" or worse rating. Meanwhile, short interest account for 6.3% of the stock's available float. 

When we last checked in with PLTR, its options pits were showing a stronger-than-usual penchant for puts. Today, however, 170,000 calls and 71,000 puts have been exchanged, with overall options volume running at five times the intraday average. The 8/12 10-strike call is the most popular contract by far, with new positions being bought to open there. 

 

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