Palantir Technologies Inc. fell 7% in the first hour of trading on Thursday after its shares became eligible to sell for the first time. According to Bloomberg, nearly all shares are now unlocked for trading, eliminating the unusual restriction placed when the company went public.
- Stock lockups are common after initial public offerings but less for companies that directly list in an exchange as Palantir did.
- Following the lifting of the restriction, two longtime investors indicated they would hold the stock, but billionaire George Soros signaled his plans to exit.
- The expiration of the lockup is a volatile time for Palantir, which remained private for a long time and faces controversy from its works with military and intelligence agencies.
- Soros Fund Management says it will sell Palantir for ethical reasons and does not approve of its business practices.
- Palantir still has backing from corporates like BP Plc and Merck KGaA as well as governments worldwide, some using it to battle Covid-19 and power vaccine distribution.
- Since going public, Palantir stock has tripled but has now fallen for six consecutive trading days.
Palantir stock is currently declining. PLTR: NYSE is down 7.20%