Palantir Is Punishing Shareholders With This Regular Practice
Data specialist Palantir Technologies (NYSE: PLTR) is a unique company. It requires top-notch talent to build complicated software solutions for some of the world's most complex tasks, including working with the most secretive parts of the U.S. government.
The story is fantastic, but sometimes it doesn't translate well to investment returns. The stock is sitting at $10 per share, the same price it went public at in late 2020. A bear market that was especially hard on tech stocks certainly deserves some blame, but there is a deeper issue that investors should know about.
Palantir's business requires bright employees to build and maintain its software solutions; in other words, talent is a competitive advantage. Good help isn't cheap, and Palantir has chosen a strategy of luring talent with significant stock-based compensation instead of large cash salaries.
Source Fool.com
