Palantir Stock (PLTR) Surges

Palantir's stock (PLTR) surged over 11% on Friday, November 15th, reaching an all-time high of $66 after the company announced it would transition its shares to trade on the Nasdaq stock exchange.

The data analytics software company stated in a press release late Thursday, November 14th, that it will transfer its stock listing from the "New York Stock Exchange" (NYSE) to the "Nasdaq" (NASDAQ) on November 26th.

About Palantir

Palantir Technologies is an American company specializing in data analytics and software. Founded in 2003 by Peter Thiel, Alex Karp, and others, the company aims to help government agencies and corporations analyze big data to make strategic, informed decisions.

Overview of Palantir

• Headquarters: Denver, Colorado, USA.
• Founded: 2003.
• Founders: Peter Thiel, Alex Karp, Joe Lonsdale, Stephen Cohen, Nathan Gettings.
• Sector: Data analytics and software.
• Stock Symbol: PLTR (listed on NYSE).

Key Products and Services

• Palantir Gotham: A data analysis system used by intelligence and defense agencies. It enables users to integrate and analyze data from multiple sources to identify patterns and detect security threats. It has been instrumental in tracking terrorist activities and preventing attacks through advanced analytics.
• Palantir Foundry: A platform used by major companies for data analysis and process improvement. It enables organizations to integrate diverse data sources and turn them into actionable insights for strategic decision-making.
• Palantir Apollo: A cloud software management system that facilitates real-time deployment and updates. It allows organizations to continuously and quickly update their applications, providing flexibility to adapt to changes.

Key Clients

• Government Sector: Includes the U.S. Department of Defense, CIA, and FBI.
• Private Sector: Includes companies like BP, Fiat Chrysler, and major firms in the pharmaceutical and financial services sectors.

Financial Performance

• Public trading began through direct listing on the stock market in September 2020.
• Significant revenue growth due to increasing demand for data analytics solutions.
• 2023 Revenue: Surpassed $2.2 billion.
• Growth Rate: Despite global economic challenges, Palantir continues to achieve steady growth through government contracts and expansion in commercial sectors.

Advantages of Palantir

• Advanced analytics capabilities: Utilizes machine learning and AI to analyze massive amounts of data.
• Strategic partnerships: Collaboration with key government agencies and global companies enhances its market position.
• Platform flexibility: Ability to customize solutions for diverse client needs, opening new markets.

Challenges Facing the Company

• Privacy and security concerns: Criticized for individual privacy protection due to its data collection and analysis operations.
• Dependency on government contracts: A significant portion of revenue comes from government contracts, making it vulnerable to political fluctuations.
• Increasing competition: Faces competition from tech giants like Google, Microsoft, and Amazon entering the data analytics sector with immense capabilities.

Palantir and Artificial Intelligence

Palantir has been developing advanced AI solutions for over 20 years, gaining prominence through designing innovative algorithms to support the intelligence community, military, and law enforcement in the United States.

Its systems stand out for their unique ability to connect seemingly unrelated data, aiding in thwarting terrorist plots and bringing perpetrators to justice. Since then, the company has expanded into broader domains, offering its advanced data analytics expertise to commercial institutions.

As companies began demanding actionable AI solutions last year, Palantir rapidly developed its generative AI platform (AIP), which provides data-driven answers. The system leverages company-specific data to create tailored solutions for clients.

Impressive Numbers Reflecting Growth

One of the main barriers to adopting AI was the lack of expertise among most companies to start in this nascent field. Palantir successfully devised a unique strategy to address this issue.

The strategy involves hosting training sessions that bring together client representatives and Palantir engineers to ensure the development of AI solutions tailored to their needs. This approach has achieved remarkable success, exceeding the company’s ambitious goals in data analytics.

• In Q3, Palantir closed around 104 deals worth at least $1 million each.
• 36 deals were valued at $5 million or more.
• 16 deals were worth $10 million or more.

Revenue grew by 30% year-over-year to $726 million and increased 7% quarter-over-quarter, marking the company’s eighth consecutive profitable quarter.

Optimistic Outlook

Palantir's high valuation has divided Wall Street. According to the October coverage by 19 analysts, six recommended buying or strong buying, seven advised holding, and the remaining six rated the stock as underperforming or selling.

Skeptics share concerns about the stock's valuation, but these worries might be misleading. The stock is trading at 160 times future earnings and 40 times next year's sales.

However, the price-to-earnings-to-growth ratio (PEG), considering the company's rapid growth, stands at 0.5—indicating the stock might be undervalued. A PEG below 1 is typically seen as a benchmark for undervalued stocks.

While Palantir may not suit all investment portfolios, long-term investors with a high-risk tolerance might find the company a massive buying opportunity in the AI sector, potentially yielding substantial long-term rewards.

Palantir Q3 2024 Earnings

• Reported revenues of $725.52 million, surpassing analysts’ expectations of $705.11 million.
• Annual revenue growth of 30%.
• Earnings per share (EPS) of $0.10, exceeding market expectations of $0.09 per share.
• U.S. revenue increased by 44% to $499 million, driven by a significant 54% growth in commercial revenue.

The number of clients rose by 39% compared to last year, with 104 deals exceeding $1 million each during the quarter.

Palantir raised its annual revenue forecast to between $2.805 billion and $2.809 billion, reflecting continued strong demand for its AI solutions.

Palantir Earnings Forecasts for 2024 and 2025

2024 Forecast

Palantir's profits are expected to reach approximately $476 million, with annual growth projected at about 13.6%.

2025 Forecast

By 2025, profits are projected to increase to around $672 million, with an estimated range of $592 million to $843 million, demonstrating robust annual growth.

Key Price Milestones for Palantir Stock

• December 2022: Recorded an all-time low of $5.92.
• November 2024: Reached an all-time high of $66.00.
• December 2022: Lowest closing price of $6.00.
• November 2024: Highest closing price of $65.77.

Best and Worst Performance of Palantir Stock

Best Performance in History:

• 2024: Best annual performance "so far" with a 260% increase.
• Q4 2020: Best quarterly performance with a 148% rise.
• November 2020: Best monthly performance with a 168% surge.

Worst Performance in History:

• 2022: Worst annual performance with a 65% decline.
• Q2 2022: Worst quarterly performance with a 34% drop.
• February 2021: Worst monthly performance with a 32% decrease.

Notable Events in Palantir Stock History

• September 2020: Palantir debuted on the NYSE at $10 per share.
• November 2020: Palantir stock traded above $25 for the first time.
• November 2024: Surpassed the $50 mark for the first time.

Key Predictions for Palantir Stock in 2024

• Wall Investors: Predicts Palantir will reach $80 before the end of 2024.
• Coin Codex: Forecasts the stock to hit $70 by the end of 2024.
• GreenTech Research: Anticipates the stock will surpass $100 by year's end.

Factors Affecting Palantir Stock Predictions

• Company’s financial performance: Revenue, earnings, and expenses are crucial factors.
• Innovation and technology: Launching new products and technical updates can support future expectations.
• Government and commercial contracts: Securing new contracts or renewing existing ones can boost growth.
• International market expansion: Entering new markets supports revenue growth.
• General economic conditions: Inflation, interest rates, and market trends impact investor confidence.
• Sector competition: The influence of competitors like Snowflake and Databricks.
• Legal and regulatory environment: Changes in privacy laws and cybersecurity regulations.

FAQs About Palantir

Is Palantir Stock a Good Investment?

Currently trading around $60, Palantir stock is considered a good investment with price targets above $70 in 2024 and $100 in 2025. Entry points between $40 and $50 are seen as favorable.

How to Invest in Palantir?

• Direct stock purchase: Buy Palantir shares through U.S. stock exchanges.
• Investing via index funds: Invest in funds that include Palantir shares.
• Long-term investment: Hold the stock to benefit from future growth.
• Stock speculation: Engage in day trading to capitalize on price fluctuations.
• Options trading: Trade options for potential future profits.

Top Data Analytics Companies Listed on U.S. Exchanges

Technical Analysis of Palantir Stock (PLTR)

The daily chart for Palantir Technologies' stock highlights a strong upward momentum in recent weeks. Analyzing medium-term trades, it becomes evident that the price breakout was triggered after the stock completed the formation of an inverted head and shoulders pattern, as illustrated in the chart below:

Key Pattern Analysis

• Breaking the neckline of the mentioned pattern at $26.65 was a significant catalyst, driving the price upwards.
• The stock reached its all-time high of $66.00.
• Signs of a potential short-term correction have emerged, with the possibility of breaking the $58.90 level.

Future Expectations

1. The stock might face bearish pressure if the $58.90 level is breached.
2. A potential target for the downside correction is at $51.85.
3. Resumption of the bullish trend is expected upon surpassing $63.25.

In summary, the overall expectation for Palantir's stock trend remains bullish in the short to medium term. This could be preceded by some downward corrections, as outlined above. Breaking $63.25 serves as a key positive signal to invalidate the bearish scenario.