Palantir Technologies (PLTR) Stock Price and Forecast: Rally on as breakout stabilizes
- Palantir stock rallied sharply on Wednesday over 5% to $25.28.
- Stock slightly lower on Thursday at $25.
- PLTR following on from a very strong earnings report.
Update: Palantir stock is trading lower on Thursday but still holding the bullish tone established since a strong earnings report last week. The stock is comfortably above the 9-day moving average and the RSI is trending higher in line with price. The MACD is also breaking out of the long-term downtrend.
Palantir stock surged over 5% on Wednesday, in the process strongly outperforming falling global equity markets. Palantir produced a strong earnings report last week, which resulted in the stock breaking out of the channel. Earnings were strong, but it was more the nature of the earnings and customer wins that had investors purring. Palantir beat on the top and bottom lines of results – revenue and EPS – but it was the increased guidance going forward that garnered the most attention. Palantir doubled its free cash flow forecast from $150 million to $300 million and outlined strong details of new customers and revenue generation from existing customers. Interestingly, the company also disclosed that it had spent $50 million on gold bars as perhaps it seeks to combat inflationary pressures and invest its growing cash pool.
Wednesday's move in Palantir can possibly be attributed to two things. This is a well-followed retail stock and reports yesterday from Benzinga were that the stock was named as a long on some well-followed investor sites and blogs. Also Cathie Wood remains a key supporter of the stock with her ARK funds buying another 476,000 shares on Tuesday, pushing its holdings up even more. ARK funds hold nearly 36 million shares in Palantir.
Palantir key statistics
| Market Cap | $49.2 billion |
| Enterprise Value | $47.8 billion |
| Price/Earnings (P/E) | 135 |
|
Price/Book | 28 |
| Price/Sales | 40 |
| Gross Margin | 0.7 |
| Net Margin | -0.95 |
| EBITDA | -$1.24 billion TTM |
| 52 week low | $8.90 |
| 52 week high | $45 |
| Average Wall Street rating and price target |
HOLD $24.61 |
Palantir stock forecast
The stock still has work to do but is moving nicely in the right direction. Yesterday's powerful surge took out the previous post-earnings high and so continues the strong trend. Next up is a push to target resistance at $27.49. This is the big win for bulls. Volume dries up sharply above here, so a move could then accelerate to fill the gap at $31.34 as we have been mentioning. This gap is ironically from a previous earnings release. Holdiong $23.49 remains key to the bullish trend. The Moving Average Convergence Divergence (MACD) indicator is also about to break out of its long-term downtrend, giving us further comfort in the bullsih call.
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Author
Ivan Brian
FXStreet
Ivan Brian started his career with AIB Bank in corporate finance and then worked for seven years at Baxter. He started as a macro analyst before becoming Head of Research and then CFO.
