Why Palantir Stock Just Set a 52-Week Low

Palantir Technologies (NASDAQ: PLTR) stock, one-time prima of the defence exertion industry, tumbled 5.2% done 12:50 p.m. ET Thursday. In fact, earlier successful the morning, the institution concisely acceptable a caller 52-week debased stock terms of $106.39.

And here's the weird thing: It dropped not connected atrocious quality but connected bully news.

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Palantir's inactive winning contracts

Monday, Palantir confirmed it volition play a relation successful the U.S. Army's Next Generation Command and Control (NGC2) project, helping modernize command-and-control. Separately, the institution announced a concern with Zeta Global (NYSE: ZETA) to usage Palantir's AI infrastructure to enactment Zeta's marketing.

But here's the thing: Palantir didn't enactment a dollar worth connected its NGC2 contract. And according to Wedbush expert Dan Ives (who's a Palantir fan, with an outperform standing and a $230 terms target), the Zeta woody volition "drive much than $100 cardinal successful gross for Zeta implicit aggregate years."

That's not a batch of wealth comparative to Palantir's $5.2 cardinal yearly gross stream. What's more, this is gross Zeta will cod with assistance from Palantir. What it pays Palantir for that assistance volition astir surely beryllium overmuch little than $100 cardinal and "over aggregate years."

What it means for Palantir

So neither declaration promises to determination the needle overmuch for Palantir, reconstruct the one-time tech darling's momentum, oregon propulsion Palantir retired of its 52-week funk. But here's the good news for Palantir investors:

Valued contiguous astatine $272 billion, generating $2.7 cardinal successful yearly escaped currency flow, and expected to turn net astatine 54% annually, Palantir is yet approaching a defensible valuation -- a price-to-FCF-to-growth ratio of little than 2.0.

I'm not rather acceptable to bargain Palantir astatine this price. But if the banal drops overmuch more, I could yet spot that happening.

Should you bargain banal successful Palantir Technologies close now?

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