Sign InPalantir Technologies Inc. (PLTR) Positioned for Growth Despite Losses
Summary
Palantir Technologies Inc. (PLTR) is a data analytics company rooted in AI, with a market cap of $33.30 billion, and despite not being profitable yet, it has shown double-digit growth, strong customer demand, and potential for expansion, leading analysts to categorize it as a Buy with a bullish trend expected in the next trading day. (August 14, 2023)
Company Overview
Palantir Technologies Inc. (ticker: PLTR) is involved in the data analytics sector, rooted in AI from the outset. PLTR is listed on the NYSE, with a market cap of $33.30 billion and a total of 2.12 billion shares outstanding. The most recent closing price was $15.72 (as of August 14, 2023) with an intraday high and low of $15.74 and $14.95 respectively. The 52-week range of the stock was $5.92 - $20.24.
Technical Analysis
Palantir's 14-day Relative Strength Index sits at 46, falling into the neutral category. The MACD for the trailing three months stands at 0.67, indicating a mildly bullish trend. The Average True Range (ATR) at 7.05 signals a high degree of volatility for the stock.
Over the past 50 days, the stock has averaged $16.19 and for the last 200 days, it averaged $10.14, suggesting a general uptrend in recent times. Presently, the stock has a support level of $14.71 and a resistance level of $16.
Fundamental Analysis
According to the earnings per share (EPS) of -$0.12 and the P/E ratio of -131, Palantir hasn't turned profitable yet. This loss is not unusual for technology stocks in their growth phase.
From news sources, we learn that the company’s Q2 earnings indicate double-digit growth and introduce the potential to expand the company’s total addressable market with its generative AI offering. The company's customer count has grown by 38% YoY, indicating strong demand for its software. The stock got featured among "The 3 Most Undervalued Stocks Under $20 to Buy Now" in August 2023, even amidst looming recession threats.
Analyst Opinions and Forecast
In terms of analyst ratings, consensus leans towards a "Buy". There are seven "Buy" recommendations, one "Hold" and two "sell". The forecasted high and low 12-month price targets for the stock are $25 and $4.5 respectively, with a median target of $9.5 and a consensus target of $11.
Future Outlook
Given the current market conditions and the fundamental and technical information pertaining to Palantir, it is expected that PLTR stock will likely follow a bullish trend for the next trading day, August 15, 2023, possibly continuing throughout the week but may encounter resistance at $16. The stock is to be watched closely around earnings announcement scheduled for November 6, 2023 as it could swing the stock price dramatically.
Final Evaluation
Taking all these factors into account, the analyst would categorize Palantir Technologies Inc. (PLTR) as a "Buy". The decision is supported by solid growth, increased market demand, strategic pivot towards AI, and positive analyst sentiment. The company seems to be strategically positioned for long-term growth, and this justifies its current valuation and represents a potential opportunity for considerable future appreciation.
