Is Palantir's Stock Getting Too Hot to Handle?
Palantir (NYSE: PLTR), a data-mining firm that generates most of its revenue from government contracts, went public via a direct listing in late September. The New York Stock Exchange set a reference price of $7.25 per share for the stock, and it closed at $9.50 on its first trading day.
However, Palantir's stock subsequently traded sideways as insiders sold tens of millions of shares. Those sales weren't surprising, since direct listings let private shareholders sell their shares to public investors. That's different from a traditional IPO, in which new shares are issued and sold.
But in early November, Palantir's stock started climbing ahead of the release of its third-quarter report on Nov. 12. After Palantir posted those numbers, the stock price surged to the low $30s by the end of November before pulling back to the low $20s currently.
Source Fool.com
