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Are Palantir, Shopify Close To Rebounding?

4 12 1
04.08.2022

Enterprise software makers like Palantir Technologies (NYSE: PLTR) and Shopify (NYSE: SHOP) are continuing to languish in correction mode, even as the broader market attempts to stage a rally.

In Wednesday's trading, major U.S. indexes notched strong gains, with the tech-heavy Nasdaq leading the way.

Techs, including those that were at the forefront of the 2020 work-from-home rally, have slumped badly since late last year.

Rising interest rates often do significant damage to growth stocks, including techs. That's because these growth names tend to have high price-to-earnings ratios and low (or non-existent) dividend payouts. Growth companies often put earnings back into high-potential projects rather than distributing earnings back to investors in the form of dividends. That's especially true in their early years.

However, techs can suffer when inflation rises and interest rates rise, as the companies' ability to invest back into projects is curtailed.

Palantir, which specializes in enterprise........

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