Sign InSummary
Palantir Technologies' stock closed at $15.46 per share on July 3, 2023, showing a slight increase and indicating a potential bullish trend in the short term, supported by positive news sentiment and the company's strong positioning in AI and big data analytics.
Stock Overview & Performance
Palantir Technologies Inc. (Ticker: PLTR) closed at $15.46 per share as of July 3, 2023, reflecting a modest increase of $0.13 (0.85%) from the preceding trading session. This performance flirted with the day's range of $15.19-$15.59, which falls short of its yearly high of $17.16 and far surpasses its low of $5.92. The stock's trading volume of over 17.74 million shares falls below its average trading volume of approximately 73.59 million shares.
Technical Analysis
The Relative Strength Index (RSI14) stands at 48, indicating that the stock is neither overbought nor oversold. The 50-day moving average ($12.21) is currently above the 200-day moving average ($8.88), suggesting a bullish trend. Furthermore, the Moving Average Convergence Divergence (MACD) for the last three months is positive (0.80), implying upward momentum.
Fundamental Analysis
Palantir operates on negative earnings per share (EPS) of -$0.12 which means it's not currently profitable. This reality is reflected in its negative price-to-earnings ratio (PE) of -128.33. The technology firm has a robust market capitalization of approximately $32.62 billion. Analyst consensus sets a lower target (approximately $9.45), falling short of the discounted cash flow (DCF) measure ($16.66), an indication future cash flows are likely under-estimated.
News and Market Sentiment
News sentiment surrounding Palantir Technologies reveals a positive picture. Notably, the company's shares have surged over 50% this year, as reported on July 5, 2023. Also, there's a widely held belief that savvy investors could achieve triple-digit returns by 2029 using AI technology, and Palantir is a key player in this space.
Despite seeing its stock trade lower than its all-time highs post-pandemic, Palantir continues to grow its business, especially in big data analytics and AI markets. It has reported solid first-quarter results, including for the first time an operating profit. However, despite these achievements, concerns linger around slowing revenue growth, high valuations, and stock-based compensation.
Stock Prediction & Evaluation
Based on the above stated technical and fundamental analysis, along with the recent news sentiment, Palantir's stock performance is expected to be bullish in the short term. For the next trading day (July 5, 2023), the stock price may continue its upward trajectory, possibly exceeding its last close.
The forthcoming week could see further appreciation in stock price, especially as Palantir readies for its earnings announcement on August 7, 2023. The anticipation tied to this major event often leads to speculation, which could further buoy the stock price.
In conclusion, despite the negative earnings and high valuation, a strong market sentiment underpinned by Palantir's positioning in high-growth areas like AI and big data analytics suggests potential in the stock. Risk-tolerant investors may consider Palantir as a speculative Buy for potential short-term gains. It is stressed that investment decisions should take into account personal investment goals, risk tolerance, and financial circumstances.
