Why Palantir Stock Is Under Pressure Today
A special purpose acquisition company (SPAC) backed by Palantir Technologies (NYSE: PLTR) has gone bankrupt, which could put pressure on Palantir's growth plans and the value of its investment portfolio. Investors are concerned, sending shares of Palantir down as much as 5.5% on Monday.
Palantir is a data analytics company serving both commercial and defense customers. During the SPAC boom, the company made a series of investments in newly public companies that were also its customers, hoping to build relationships, grow revenue, and get an eventual payout if the investments pay off.
But investing can be a tricky business. Fast Radius, an on-demand manufacturer of metal and plastic parts, has filed for bankruptcy protection just nine months after it went public. Palantir joined Goldman Sachs Group and United Parcel Service in providing $100 million in financing on the SPAC deal.
Source Fool.com
