Palantir (NYSE:PLTR) is not faring that well on Thursday, down about 3%. PLTR stock has struggled all week, currently down almost 8%. That’s even as Stanley Druckenmiller again added to his long position in the stock.
Investors might assume that a billionaire investor upping their stake is a bullish statement. And it is a bullish statement, particularly when we’re talking about Stanley Druckenmiller, one of the best investors of our time.
According to the latest Form 13F, Druckenmiller’s family office — Duquesne Family Office — recently upped its position in PLTR stock. Specifically, the firm grew its position by more than 27% to 4.26 million shares. That makes it a top-10 holding in Duquesne’s portfolio. It’s not Druckenmiller’s first notable increase in the stock, either.
In May, Duquesne’s Form 13F showed that the firm more than doubled its position in PLTR stock. That’s quite a bit of confidence from Druckenmiller & Co. considering how poorly the market behaved in the first half of 2022.
Will It Move the Needle for PLTR Stock?
Unfortunately, Druckenmiller keeps increasing his firm’s stake, but PLTR stock is not responding with a bullish reaction. Shares went on a strong rally from the May low, ultimately climbing 80% to last month’s high.
Still, shares are not behaving well, currently down about 20% from last month’s high. A two-day, 19% decline earlier this month didn’t help matters after the company reported earnings.
While PLTR enjoyed a decent bounce after that initial pullback, shares are back toward the post-earnings low. The decline came after the company reported a top-line beat, but a bottom-line miss. Worse, guidance for the third quarter and full year came up short of expectations.
Druckenmiller is a legendary fund manager. However, he has a cost basis of roughly $18 a share on PLTR stock as of the end of the second quarter. Meanwhile, the stock is still down about 80% from the all-time high and 61.8% over the past year.
Perhaps there is value down here, but trading at almost 10 times this year’s revenue may not entice a lot of investors.
On the date of publication, Bret Kenwell did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
