- Palantir stock closes higher on a negative day for equities.
- Meme stocks suffer steep falls on Tuesday.
- PLTR is now stuck in a neutral range.
Palantir stock surprised markets on Tuesday by closing higher, when many retail names were suffering heavy losses. Palantir has a strong retail following but also a strong institutional interest, so it manages to straddle both meme stock and mainline sectors.
Palantir did not see much activity on Tuesday after a very solid opening when the stock was up 1% straight from the opening bell. It then traded sideways for the remainder of the session in light volume. The stock was on the wires due to its BlackSky partnership but in our view, this was not a catalyst to the gains seen from the open. It may have been option related due to quadruple witching (see here) but the move on the open did not see much follow-through.
Jefferies did increase their price target slightly for the stock on Tuesday but from $30 to $31 so, again, not significant.
Palantir key statistics
| Market Cap | $50.4 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 TTM | -$1.24 billion TTM |
| 52-week low | $8.90 |
| 52-week high | $45 |
| Short Interest | 3.1% |
| Average Wall Street rating and price target |
HOLD $24.61 |
Palantir stock forecast
Palantir had been trending nicely following a strong earnings breakout. Following this, the stock put in a continuation flag pattern and broke out of this in early September.
This had appeared to set the stock up for more gains with a push to fill the gap from February at $31.34. This was an earnings gap. Along the way the resistance at $27.49 needed to be broken to attract more momentum into PLTR stock. But the longer a stock takes to consolidate, then the weaker the trend becomes, and this is what happened here.
PLTR could not even test $27.49 and lost momentum and interest from bulls. Some profit-taking then hit the stock as equity markets started to turn negative. The stock is just currently holding the top of the flag pattern at $26, but this does not return it to a bullish trend in our view.
Palantir really needs to break $27.49 to turn bullish. Breaking $27 along the way will help, as volume thins out and that should lead to a swift break of $27.49. The Moving Average Convergence DIvergence indicator remains crossed into bearish territory, so this would need resolving before the stock turns bullish.
FXStreet View: PLTR neutral from $27 to $23, bearish below $23, bullish above $27.
FXStreet levels: Buy the dip at $25 with a stop at $24. The zone from $25 to $23 is strong support, so can be used to buy dips – just please use a stop.
PLTR daily chart
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 consolidates weekly gains above 1.1150
EUR/USD moves up and down in a narrow channel slightly above 1.1150 on Friday. In the absence of high-tier macroeconomic data releases, comments from central bank officials and the risk mood could drive the pair's action heading into the weekend.
GBP/USD stabilizes near 1.3300, looks to post strong weekly gains
GBP/USD trades modestly higher on the day near 1.3300, supported by the upbeat UK Retail Sales data for August. The pair remains on track to end the week, which featured Fed and BoE policy decisions, with strong gains.
Gold extends rally to new record-high above $2,610
Gold (XAU/USD) preserves its bullish momentum and trades at a new all-time high above $2,610 on Friday. Heightened expectations that global central banks will follow the Fed in easing policy and slashing rates lift XAU/USD.
Week ahead – SNB to cut again, RBA to stand pat, PCE inflation also on tap
SNB is expected to ease for third time; might cut by 50bps. RBA to hold rates but could turn less hawkish as CPI falls. After inaugural Fed cut, attention turns to PCE inflation.
Bank of Japan set to keep rates on hold after July’s hike shocked markets
The Bank of Japan is expected to keep its short-term interest rate target between 0.15% and 0.25% on Friday, following the conclusion of its two-day monetary policy review. The decision is set to be announced during the early Asian session.
Moneta Markets review 2024: All you need to know
VERIFIED In this review, the FXStreet team provides an independent and thorough analysis based on direct testing and real experiences with Moneta Markets – an excellent broker for novice to intermediate forex traders who want to broaden their knowledge base.