Palantir Technologies Inc (NYSE: PLTR) is emerging as the new darling of the Reddit investor forum r/WallStreetBets.
What Happened: The comment volume on the Peter Thiel co-founded company stood at 2,535 as against 1,465 on GameStop Corp (NYSE: GME), according to SwaggyStocks, a website that monitors WallStreetBets trends.
The data analytics firm’s shares fell to their lowest level since late January after it reported disappointing fourth-quarter results with earnings per share of 6 cents per share. On average, analysts estimated a profit of 2 cents per share.
On Thursday, the company’s shares extended losses for the sixth straight trading day as a stock lock-up period expired, freeing up 80% or 1.8 billion shares for sale.
Since declaring results, Palantir stock has fallen over 16%.
Why It Matters: The selloff has attracted the attention of the online crowd who are further enthused by the loose association with Tesla Inc (NASDAQ: TSLA) CEO Elon Musk — who was a former business partner of Thiel, the Wall Street Journal reported.
Previously, WallStreetBets targeted heavily shorted stocks such as GameStop and AMC Entertainment Holdings Inc (NYSE: AMC). Unlike GameStop or AMC, Palantir is not in the crosshairs of short-sellers.
The GameStop short squeeze drama has now moved to Congress where on Thursday the House Financial Services Committee held a special hearing on the matter.
See Also: GameStop Fame's Roaring Kitty To Congress: 'In Short, I Like The Stock'
Price Action: Palantir shares closed nearly 7% lower at $25.17 on Thursday and rose 4.85% to $26.39 in the after-hours session.
Photo by Tech.Co on Flickr
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