PLTR Stock Forecast: Palantir investors take profits after the 5% jump, ahead of Easter

• PLTR shares rise 2% straight on opening on Wednesday.
• ARK Invest still buying and PLTR invests in Lilium IPO.
• Palantir chart support at $20.18, look out below!

Update April 1: Palantir Technologies Inc (NYSE: PLTR) is experiencing some calm after storming higher on Wednesday and ahead of the long weekend. Shares of the secretive data analytics company are down some 0.39% to $23.20, holding onto most of its recent gains. It is essential to note that markets are still digesting President Joe Biden's massive spending and tax program.

Palantir (PLTR) shares just cannot hold any gains of late with the stock suffering another fall on Monday. Admittedly, Monday was a tough day for a lot of tech stocks with nervousness spreading across the sector following news of the Archego debacle. Archego had positions in so-called TMT stocks (tech, media and telecoms). 

Palantir ended Monday down nearly 4% at $21.73.

Palantir Technologies launched on the stock market at the end of September 2020 at a price of $7.25 a share. The firm was co-founded by legendary Silicon Valley investor Peter Thiel. PLTR is a data mining and analytics technology company. It helps companies integrate and analyse their various diverse data sets to help make sense of complicated data.

Palantir streamlines decision-making based on data analysis. The company helps with search functions and is heavily involved in the security industry. PLTR has links to law enforcement agencies such as the FBI, CIA, police and Department of Defense.

PLTR price prediction

Palantir shares have had a pretty decent correction from retail, fizz-induced highs back in January. Back then PLTR traded up to $45 as the r/WallStreetBets forum on Reddit and other social media posts backed the company. 

Since then, however, shares have lost 50% of their value to trade at under $22 now. So why the sudden loss of value?

Well, the price had been pushed too far in the first place on the back of the overly bullish retail sentiment. This was the case with a lot of stocks in January as the GameStop effect spread. It should be noted that back in November 2020, so only five months ago, Palantir shares were trading close to $10.

Palantir also released results that showed a surprising net loss. Analysts had expected EPS of $0.02, while Palantir reported EPS of $0.06. but the GAAP EPS number actually was a loss of $0.08. Revenue did beat expectations and PLTR unveiled an impressive outlook with Q1 growth expected to be 45% and YoY growth of 30%.

Post results, the shares dropped, but Goldman Sachs gave the shares some succor by issuing a strongly bullish note emphasising the strong predicated growth rate.

Insiders have been selling Palantir as they had been locked up post results. This looks to be stopping or at least slowing, and ARK Invest has been buying large blocks of stock.

Palantir technical analysis

The background has to be taken into context though when making any investment. Tech stocks have been suffering due to rising yields, and Palantir cannot avoid this. At current levels, the stock is a more attractive proposition with prices near $20. This is the bottom of the range since December, ignoring the break out in January. A break of $20 brings $12 support as the next possibility, so any purchases at the $20 level should use a stop around $18 to protect against such a move. Any bullish move will lead to resistance at $26.97 and then $30.32.

Overall, given the strong growth rates, government client list and recent new contracts, a long position at current levels appears to offer slightly more risk-reward.

Longer-term traders need to take the overall market sentiment into consideration and continued focus on PLTR fundamentals, growth rates, new customer announcements, etc. This is a high growth stock with a high P/E above 100. These stocks are generally the ones to suffer most if the overall market sentiment turns negative.

Previous updates

Update April 1: Palantir Technologies (NYSE: PLTR) has risen by 5.67% on Wednesday to close at $23.29. Shares of the somewhat secretive data analytics company jumped in response to developments in the UK. The National Health Service (NHS) defended its contract with Palantir and rejected claims made by campaigners at Open Democracy. While the NHS vowed to be more transparent, Open Democracy dropped its lawsuit, providing relief for Alex Karp's company. Thursday's premarket trading is pointing to stability as investors await the Easter holiday.

Update 2 March 31: Palantir shares finally catch some bids on Wednesday. PLTR shares are up 2% just after the open on Wednesday. Shares in Palantir have struggled for positive momentum of late. This despite ARK Invest buying more shares and Palantir taking an investment in German start up Lilium which is going public via SPAC. The last trade is $22.65, a gain of nearly 3% now.

Update: PLTR shares just cannot catch a break, with losses continuing on Tuesday straight at the bell. Palantir shares are sitting at $21 dollar dangerously near key support at $20.18, the low from March 5. A break of this level would bring $17.06 into view. On Tuesday it was announced that Lilium is to IPO via a reverse merger with SPAC QELL. Palantir is to take a stake in Lilium. QELL shares are up 2% at the time of writing. See more.

 

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