Palantir Technologies (PLTR) stock is under selling pressure today after Fast Radius (FSRD) filed for chapter 11. Palantir bought 2 million Fast Radius (FSRD) shares at $10 each for a total cost of $20 million. Palantir also agreed to a $45 million “master subscription agreement” with Fast Radius in the next six years, with $9.4 million paid to Palantir on the close of the company’s merger, and an additional payment due of a minimum $10.1 million.
Fast Radius (FSRD) went public in February via a merger with a special-purpose acquisition company (SPAC), called Environmental Growth Opportunities (ECP). Fast Radius (FSRD) also raised extra cash through public investment in private equity offering (PIPE).
PLTR has invested $326 million in SPAC deals in 2021 and $124.5 million in 2022, in over twenty companies that went public via SPAC merger, and those companies were becoming Palantir customers.
Fast Radius FSRD
Fast Radius through its bankruptcy filing, requested that the court establish certain sale and marketing procedures, with the company said to be in discussions with potential partners. Potential buyers might be FATHOM, CORE Industrial Partners, Proto Labs, BASF or may be GKN. Alternatives are being explored and evaluated, while a proposed bid deadline of December 5, 2022, has been set.
The company expects to operate normally, with ongoing services and partnerships to be maintained but expects that its common stocks (FSRD) and warrants will be delisted from the NASDAQ Stock Exchange and moved to Pink Sheets. As of writing Fast Radius stock is trading 17.65% lower at $0.2001 with a market capitalization of $18.38 million.
Palantir (PLTR) third-quarter earnings lower than expectations
Palantir Technologies reported third-quarter earnings lower than estimates while the revenue came slightly better than the analyst’s expectations. The EPS came at $0.01 below the analyst’s expectations of $0.02. The revenue rose by 21.9% to $477.78 million topping the Wall Street consensus estimate of $470.
Palantir provides analytical tools for big data to governments and big commercial organizations while the biggest customer is the U.S. government.
Palantir stock is trading 3.21% lower at $8.14 despite the positive momentum across the board the last three trading days with hefty gains in Nasdaq and S&P 500.
Nikolas has been involved in the finance industry for over fifteen years spanning across Europe and USA with a depth of knowledge and experience within many aspects of the financial markets. Nikolas gained several years experience with some of the Europe’s leading Brokers, as equity analyst, and trader managing accounts for both Private and Corporate Investors. He enjoys both the fundamental and technical aspects of trading focusing on stock markets and all FX majors. Currently, Nikolas provides analysis and comments to online financial publications. Educational background in Economics (BSc), and Finance (MSc).