The shares of Palo Alto, Calif.-based software platform developer Palantir Technologies Inc. (PLTR) have plunged 60.8% in price over the past year and 31.6% year-to-date. The recent tech-sell-off combined with the company’s negative profit margins has driven the price retreat by its stock. In November, PLTR released its financial results for the third quarter, ended Sept.30, 2021. The company incurred a $102.14 million net loss, translating to a $0.05 loss per share, in the third quarter. PLTR’s commercial business picked up in the recent quarter as U.S. commercial revenue grew 103% year-over-year. However, PLTR’s primary government business segment witnessed slower growth, with sales rising some 34% year-over-year in the third quarter, compared to 71% over the first two quarters. It is also concerning that its commercial revenue comes primarily from the United States, while the international commercial business is sluggish.
The software industry is projected to grow rapidly in the coming months as IT spending increases amid the unabated adoption of hybrid work models. Research firm Gartner expects global IT spending to rise 5.1% year-over-year to $4.50 trillion in 2022.
