Shares of Palantir Technologies (NASDAQ:PLTR) have been on a very bumpy ride of late. Last week, the lockup period for approximately 80% of the company’s shares was lifted, allowing early investors to cash in on their investments made, in many cases, years ago. This has resulted in shares of the tech company providing software and solutions to intelligence services to drop as much as 40% from its peak.
This drop was not unexpected – similar drops have been seen at other high-priced IPOs in the past. Palantir actually went public via a direct listing last September, and have seen a lot of investor interest. In particular, this stock is one of the few "meme" stocks that has trended on social media platforms such as Reddit. Many retail investors like the long-term upside this stock has, and believe this is a company with parabolic near-term upside.
Perhaps this is the case. However, with so much near-term selling pressure dragging down these shares, bearish headwinds have prevailed at least since the lockup period expired. For those bullish on this stock long-term, this sharp drop could provide the dip needed to get in at a more reasonable level.
Regardless, this is one of those tech stocks only those with a steady stomach should venture into right now. This is because I anticipate these shares will have a tremendous amount of volatility in the near-term as the market continues its price discovery on this stock.
Invest wisely, my friends.
