Palantir Technologies Stock Takes a Hit From Highs: Now What?

The chart of healthcare company displays a slight surge of 1.59% today. Palantir Technologies’ stock has been in focus among investors since the start of the year. However, the stock has managed a dramatic loss of 11.69% during the last month, so far and the rally continued on Wednesday. The company tries to recover the market after a volatile patch. This morning, the stock jumped by as high as 1.19% during pre-market trading. One of the major triggers behind the rally this week is linked to the completion of the direct stock offering to institutional investors. Stockholders of Palantir Technologies have done quite well in the previous year, with the stock price increasing by 136%.

Despite the firm is now losing money, investors remain confident in Palantir Technologies’ development and future worth. The firm just received an $823 million contract from the US Army, and we wanted to assess the company’s cash capacity to bear costs till profitability. The cash runway of a firm is the length of time it would take to deplete its cash reserves at its present cash burn rate. Palantir Technologies has 0% debt and $2.3 billion in cash when it last declared its balance sheet in June 2021.