Palantir Technologies Inc 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 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 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 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.
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