Palantir (NYSE:PLTR) stock is taking a beating on Tuesday after releasing its earnings report for the fourth quarter of 2020 this morning.
Unfortunately for investors in PLTR stock, the company’s results for the fourth quarter of the year were mixed. That includes an operating loss of $156.57 million and revenue of $322.09 million. Wall Street’s estimates were for operating profit of $48.1 million on revenue of $300.74 million.
Palantir notes that there are a couple of reasons that its operating loss didn’t meet expectations for the quarter. That includes $241.8 million in stock-based compensation and $18.9 million connected to employer payroll taxes.
It’s worth noting that the fall in PLTR stock today comes as it sees higher than normal trading. That includes some 87 million shares of the stock changing hands. To put that in perspective, the company’s daily average trading volume is roughly 72 million shares.
Another thing that potential investors need to know about PLTR stock is where much of its trading comes from. The stock is a frequent target of investors on social media, including those belonging to the Reddit WallStreetBets.
These traders have been choosing stocks to go after and pump up by buying and holding shares. That’s seen them target several other stocks to push up the prices of shares before cashing out for profits.
PLTR stock was down 8.7% as of Tuesday morning but is still up 24.7% since the start of the year.
On the date of publication, William White did not have (either directly or indirectly) any positions in the securities mentioned in this article.