Sign InSummary
The analysis, conducted on August 30, 2023, reveals that Palantir Technologies Inc.'s stock price increased by 6.04%, signaling a bullish trend, but the potential bearish momentum and concerns about the company's profit generation suggest a Hold recommendation for investors.
Technical Analysis
Based on the given data, Palantir Technologies Inc. has a current stock price of $16.33 (at close on August 30, 2023), representing a change of $0.93 or a 6.04% increase. The daily low and high prices were $15.33 and $16.35, respectively. In terms of yearly performance, the stock hit a low of $5.92 and a high of $20.24. With a market capitalization of $34.88 billion, it is evident that Palantir is a large cap company. The volume of shares traded on the last trading day was 65.27 million, which is lower than the average volume of 75.91 million.
Looking into technical indicators, the RSI14 is at 57, indicating neither overbought nor oversold conditions. The stock is trading above both the 50-day and 200-day moving averages ($16.05 and $10.55 respectively), which signals a bullish trend. However, the MACD value of -1.27 suggests a potential bearish momentum.
Based on the ATR value of 6.06, Palantir has exhibited significant volatility, which could potentially carry risks or opportunities for traders. The stop-loss price is set at $15.70, just below the current support level of $16.3. The immediate resistance level for the stock is placed at $17.04.
Fundamental Analysis
From a fundamental perspective, Palantir has an EPS of $-0.02, reflecting a PE ratio of -816.5, which can be a cause of concern as it might suggest the company is not generating a profit. The total number of outstanding shares is 2.14 billion.
Looking at the discounted cash flow (DCF) of $17.59, the stock may be considered undervalued at its current price. However, the target price consensus is $11, implying a potential decrease, with a high target of $25 and a low target of $4.5. This suggests a large spread between forecasts.
The consensus rating among analysts is, interestingly, a "Buy", with seven analysts recommending a buy, two recommending sell and one suggesting to hold the stock. The earnings announcement is expected on November 6, 2023.
Recent News and Predictions
Recent news indicates mixed reception for Palantir's future prospects. The potential threat from Microsoft-backed OpenAI's ChatGPT and the observation that Palantir's AI software takes time to implement can be seen as negative indicators for the company's near-term prospects. However, Palantir's inclusion in discussions about major AI stocks suggests industry recognition.
As for predictions, given the above technical and fundamental analysis, and without considering external market forces and the broader economic picture, it may be reasonable to expect a slight increase in the Palantir's stock price on the next trading day. For the upcoming week, however, given the current bearish MACD offsetting bullish moving average signals, the stock might experience some pullback to lower resistant levels.
Final Evaluation
After considering the technical and fundamental metrics along with recent industry news, the final assessment of Palantir stock leans towards a "Hold". While the company showcases strong growth potential in the AI business domain, it faces challenges in terms of implementation time and increased competition. Additionally, the technical indicators present mixed signals that warrant caution, and the current price looks relatively high compared to the consensus target. This suggests investors may want to wait for a better entry point before considering buying the stock. Regular re-evaluation based on emerging news and market trends is recommended.
