Tech Stock Extends Losses Despite Additional Contract

Plus, shorts have been building their positions

Digital Content Manager
Dec 2, 2021 at 2:08 PM
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The shares of Palantir Technologies Inc (NYSE:PLTR) are down 0.4% to trade at $19.32 at last check, despite the company securing an additional $43 million contract from Space Systems Command (SSC), bringing the total face value of the contract to $91.5 million. Separately, the tech concern signed a multi-year agreement with Kinder Morgan (KMI) to strengthen pipeline operations. 

The last time we checked on Palantir Technologies stock, it was falling after CEO Alex Karp called on tech companies to justify doing business with China or other U.S. rivals. The security has since extended those losses, pressured lower by the 10-day moving average. Year-to-date, PLTR has shed 18.1%, though the $19 level looks liked it could contain today's pullback.

PLTR 10 Day

The brokerage bunch leans pessimistic. Of the five analysts in coverage, all but one call PLTR a tepid "hold" or worse. Meanwhile, the stock's 12-month consensus target price of $23.81 is a 23.6% premium to current levels.

Short sellers have been piling on the equity of late. Short interest rose 44.5% in the most recent reporting period, with the 90.74 million shares sold short now accounting for 5.5% of the stock's available float.

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