Investors who bought stocks during the COVID-19 market crash in 2020 have generally experienced some big gains in the past two years. But there is no question some big-name stocks performed better than others since the pandemic bottom.
Palantir's Bumpy Ride: One company that has been a disappointing investment in the past two years has been Palantir Technologies Inc (NYSE:PLTR).
Palantir made its public debut on Sept. 30, 2020, and IPO investors have underperformed the market in the 18 months that have followed.
Palantir’s Big Debut: Data analysis software pioneer Palantir was founded in 2003 and made the move to go public 17 years later. It priced its direct listing at $7.25 per share, but the stock opened its first day of trading at $10.
On its first day of trading, Palantir shares traded as high as $11.42 before closing the day at $9.50. The stock spent much of its first month under its $10 opening price, at one point dropping to its 2020 low of $8.90. In late October, Palantir shares took off like a rocket. Palantir hit $20 in late November and $30 just days later.
Palantir hit its 2020 high of $33.50 in November before cooling off to close out the year. By the end of December, the stock was back below $25.
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The turn of the calendar year marked the beginning of a rally to new highs for Palantir in early 2021. In fact, the stock made is as high as $45 in late January after becoming a darling of Reddit’s WallStreetBets community.
2022 And Beyond: Unfortunately, a broad market sell-off in high-growth tech stocks has heavily weighed on Palantir shares in the past year.
Following a weak first-quarter earnings report in May, Palantir stock is now trading all the way back down at $6.85.
In fact, investors who bought Palantir on the day it hit its 2020 pandemic low and held on have lost a significant portion of their investment. In fact, $1,000 in Palantir stock bought on Oct. 6, 2020, would be worth about $767 today.
Looking ahead, analysts are expecting Palantir's stock to rebound significantly in the next 12 months. The average price target among the nine analysts covering the stock is $11, suggesting 54.3% upside from current levels.
