Palantir Technologies Stock Price and Forecast: Is it time to buy PLTR?


  • 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:

Share: Feed news

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


Recommended content

Editors’ Picks

EUR/USD: Negative bias should persist below the 200-day SMA

EUR/USD: Negative bias should persist below the 200-day SMA

EUR/USD lost traction and faded the initial bull run to the area of yearly peaks near 1.0530, all following a late bounce in the US Dollar amid steady risk aversion in the global markets.

EUR/USD News
GBP/USD alternates gains with losses near 1.2480

GBP/USD alternates gains with losses near 1.2480

After climbing to three-week highs above the 1.2500 mark, GBP/USD has lost some momentum and retreated to the 1.2480 range, driven by a modest recovery in the US dollar on Monday.

GBP/USD News
Gold extends corrective decline towards $2,730

Gold extends corrective decline towards $2,730

Spot Gold is under strong selling pressure at the beginning of the week, trading around the $2,730 mark in the American session. The bright metal was unable to advance against a battered US Dollar (USD) despite a dismal market mood.

Gold News
Crypto Market Crash: How corporate investors $58B move after Trump Inauguration triggered Bitcoin price dip

Crypto Market Crash: How corporate investors $58B move after Trump Inauguration triggered Bitcoin price dip

Bitcoin’s price dipped as low as $98,500 on Monday, its lowest in 12 days since January 15. On-chain data trends show how whale investors’ strategic moves after Donald Trump’s inauguration may have triggered the crypto market crash. 

Read more
Five fundamentals for the week: Fed, ECB and US GDP try to compete with Trump

Five fundamentals for the week: Fed, ECB and US GDP try to compete with Trump Premium

The gift that keeps on giving – US President Donald Trump continues to be "generous" with market volatility, but this week, he'll face competition from the Fed. A rate decision in the Eurozone, the first release of US GDP for the entire 2024, and the Fed's favorite inflation gauge will all rock markets. Fasten your seatbelts..

Read more
Trusted Broker Reviews for Smarter Trading

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.

Read More

Forex MAJORS

Cryptocurrencies

Signatures