Software infrastructure company Palantir Technologies (NYSE:PLTR) continues to make efforts to expand its business operations through various collaborative projects. However, some business headwinds, combined with its mixed profit margins and its stock’s premium valuation, may be a cause of concern for the stock’s future performance. So, is it wise to bet on the stock at its current price level? Read on to learn our view. Palantir Technologies Inc . (PLTR) in Palo Alto, Calif., develops and deploys software systems for the intelligence community to help in counterterrorism investigations and operations. In October, the National Institutes of Health (NIH) National Center for Advancing Translational Sciences (NCATS) granted PLTR a contract to continue providing a secure cloud-based data enclave to consolidate COVID-19 data for collaborative clinical research.
But PLTR stock has declined 25.2% in price over the past month and 27.1% over the past three months. Closing yesterday's trading session at $19.46, it is currently trading 56.8% below its 52-week high of $45, which it hit on January 27, 2021.
And in September, the U.K. government announced that it was ending a partnership with PLTR following concerns from privacy organizations about lack of transparency. These concerns, along with PLTR's mixed profitability and lofty valuations, could affect its future performance.