Palantir Technologies Stock Price and Forecast: Why is PLTR stock falling?
- PLTR stock falls nearly 2% on Thursday.
- The tech stock falling but so is the overall market as high growth names hit.
- Palantir formed a bearish double top and is following through on this.
Palantir stock (PLTR) continues to suffer, as recent moves against high-growth names continue. Mostly this has been related to rising yields which impact disproportionally high growth names such as Palantir. Tech and Nasdaq stocks have led the decline this week as yields on the US 10-year have pushed above 1.5%. This makes future cash flows cheaper when discounted back to the present value using a higher interest rate. It also means the comparison versus bond yields requires higher growth rates.
Palantir is certainly high growth with a host of government and private sector contracts and it released impressive results last time out in mid-September. PLTR doubled its forecasts from free cash flow generation and the stock has been strong ever since. That may also have been an additional problem. Investors may have been selling stocks they are up money in, so as to book some profits ahead of the quarter-end.
Palantir key statistics
| Market Cap | $49 billion |
| Enterprise Value | $47.8 billion |
| Price/Earnings (P/E) | N/A |
|
Price/Book | 29 |
| Price/Sales | 41 |
| 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 (PLTR)
Palantir stock continues its retracement and has now pulled back below $25, on Thursday we had a trade idea to buy a dip below $25 and we stick with this as the volume is very significant around these levels, meaning more support. Just look for a signal to start, like a red-to-green intraday switch or just a straight green opening.
The move has been very sharp since we identified the double top which has now been picked up on by traders looking for an opportunity to sell Palantir stock. The target of a double top is the length of the retracement after the first top. In the case of Palantir, this is $3.29 approximately, so this downside target is $22.71.
Bear this in mind if buying a dip below $25, use a stop as the trend is bearish in the short term, so this buy the dip is not a long-term trade but a quick scalping opportunity. Have a stop in place.
PLTR daily chart
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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.
