- Palantir stock has suffered a steep fall since the last earnings report.
- PLTR stock has fallen nearly 30% from $26 to under $20.
- Is it time to buy Palantir as it approaches a key technical level?
Palantir (PLTR) stock was one of the hot names in town for retail traders throughout 2021, but it has certainly not been rewarding investors recently. Palantir released earnings on November 9, and it has been pretty much one-way traffic since then. The stock had earlier put in a bearish double top and the earnings report just added to the negative sentiment. After earnings, Palantir (PLTR) immediately cracked below the 200-day moving average and that signaled more losses ahead. Despite some strong rallies for meme and retail names in the interim, Palantir has barely shown any signs of a bounce. Is that about to change?
Palantir (PLTR) stock news
Palantir has a strong government client list and an impressive private sector list also, which has been steadily growing through 2021. However, the stock was on quite a high price/earnings rating, which investors justified by its high compound annual growth rate. The last earnings report showed this growth rate was slowing, which is what investors appeared to focus on.
Revenue growth in Q3 slowed from 49% to 36% YoY. This prompted RBC to downgrade the stock the day after earnings. The company generated impressive cash flow with strong margins, but the issue again of stock compensation was raised by many investors. This has been a feature with Palantir for some time. On November 19 CEO Alex Karp defended Palantir's stock compensation, saying it was taking a long-term view on attracting the best talent to fuel long-term growth. "We've hired the best and most interesting and eclectic people in the world. ... They are very fairly compensated, and we will continue to develop these products and continue to comp people," he said.
Slowing growth and concerns over stock-based compensation proved too much as momentum slowed. However, growth is still strong, and the company is constantly in the news with new partnerships deals. So we expect fundamental cash and revenue generation to remain strong in 2022. Yes, it may slow, but the stock has now retreated significantly, so is it time to rethink the investment case?
Palantir (PLTR) stock forecast
For now the trend remains, bearish but what we are trying to achieve is to catch a turnaround. This is always dangerous, so stops need to be in palce. The 9-day moving average will be the first pivot at $19.77. Both the Relative Strength Index (RSI) and the Moving Average Convergence Divergence (MACD) appear also to be bottoming out, and the MACD is close to crossing over. The last post-earnings low at $17.06 from back in May is key. Holding above here means effectively a higher low, and buyers again should step back in to this area.
Trying to call a bottom is always tricky, however, Palantir has not broken above the 9-day moving avearge since earnings, so that is our short term pivot point and buy signal. Watch for a break of the 9-day MA and confirmation from a MACD crossover.
Palantir chart, daily
Like this article? Help us with some feedback by answering this survey:
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
EUR/USD holds recovery below 1.0500 after German IFO
EUR/USD clings to recovery gains below 1.0500 in the European session on Monday. The US Dollar upswing fizzles out despite broad risk aversion, aiding the pair's renewed upside. The pair also cheers upbeat German IFO survey but ECB rate cut expectations seem to limit its rebound.
GBP/USD recovers losses above 1.2450 as US Dollar loses ground
GBP/USD trims losses to regain 1.2450 in the European session on Monday. The pair fnds fresh demand amid fading US Dollar recovery even as global stocks sell-off extends and investors remain wary of US President Trump's tariff plans.
Gold price recovers a part of intraday losses, down a little around $2,760 area
Gold price recovers a major part of its intraday losses and trades with a mild negative bias, around the $2,760 area during the first half of the European session on Monday. US President Donald Trump's decision to impose tariffs on all imports from Colombia revives trade war fears and triggers a fresh wave of the global risk-aversion trade.
Bitcoin dips below $99K, wiping nearly $860 million from market
Bitcoin edges below $100,000 support and falls nearly 4% at the time of writing on Monday after hitting a new all-time high of $109,588 the previous week. The recent price decline has triggered a wave of liquidations across the crypto market, resulting in $860.55 million in total liquidations in the last 24 hours.
ECB and US Fed not yet at finish line
Capital market participants are expecting a series of interest rate cuts this year in both the Eurozone and the US, with two interest rate cuts of 25 basis points each by the US Federal Reserve and four by the European Central Bank (ECB).
Trusted Broker Reviews for Smarter Trading
VERIFIED Discover in-depth reviews of reliable brokers. Compare features like spreads, leverage, and platforms. Find the perfect fit for your trading style, from CFDs to Forex pairs like EUR/USD and Gold.