Jim Chanos Raises Red Flag On Palantir Stock - But Here's What Data Suggests
Portfolio Pulse from Shanthi Rexaline
Jim Chanos, a notable short-seller, expressed concerns about Palantir Technologies, Inc. (NYSE:PLTR) on X, highlighting a net purchase of 60 million shares by short-sellers in the last year and insider selling by co-founder Peter Thiel. Despite this, Palantir's stock has rallied about 46% year-to-date. The short ratio and percent of float do not indicate extreme pessimism. Meanwhile, bullish analysts see Palantir as a key AI player, with Wedbush analyst Daniel Ives raising the price target from $30 to $35 based on positive checks and the company's strong Q4 results.
March 14, 2024 | 12:51 pm
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Jim Chanos raised concerns about Palantir, citing short-seller activity and insider selling by co-founder Peter Thiel. Despite this, the stock has seen a significant rally and analysts remain bullish on its AI prospects.
The mixed signals from short-seller activity and insider selling by a co-founder, contrasted with a strong year-to-date rally and positive analyst outlook, create uncertainty. The short ratio and float percentage do not indicate extreme pessimism, suggesting that the market may have already absorbed the concerns raised by Chanos. The bullish outlook from analysts, based on the company's AI capabilities and strong Q4 performance, could continue to support the stock's performance in the short term.
CONFIDENCE 80
IMPORTANCE 90
RELEVANCE 100