In mid-October, I set a simple rule for buying Palantir Technologies (PLTR -1.65%) stock: 120 times the earnings it posted for its last four quarters. Back then, that was around $140 per share, while the stock traded near $198.
I also said that if Palantir’s earnings kept rising, my buy price should rise with them.
They did. Palantir’s third-quarter report, released after the market closed on Monday, Nov. 2, lifted those trailing earnings enough to move my number to about $172 per share.
And the stock moved the other way. Shares closed Monday at $178.34 and dropped about 3% after hours to roughly $173 as of this writing. Shares are now down about 17% from their Oct. 9 record close of $209.05 — and sit only about 1% above my new price.
