- PLTR shares continue to be bought by ARK Invest.
- Palantir results disappointed but ARK has been buying.
- ARK Invest bought 5.2 million shares on Thursday.
Update: Palantir shares rallied strongly on Friday as ARK Invest posted that it had bought over five million shares on Thursday in Palantir (PLTR). ARK Invest had announced on Tuesday that they had bought one and a half million shares. ARK Invest's Cathie wood had spoken on Wednesday about Palantir saying not a short term play but liked it for the long term.
PLTR Stock Forecast
Shares in Palantir continued to suffer a post results fall, closing out Wednesday with a near 3% loss at $27.08. At the time of writing Palantir shares are lower again during early pre-market trading on Thursday at $26.23, another 3% loss.
PLTR shares had been one of the hot stocks of 2021 and the new breed of retail investor had been very bullish on the stock. PLTR shares began 2021 at $23.91 and quickly spiked up to $45 as the Reddit mania targetted the stock.
But Palantir is not a struggling industry and had good reason to be bid up. Palantir is backed by legendary silicon valley investor Peter Thiel, he of PayPal fame. PLTR has a strong government based client list including nearly all US intelligence agencies and multiple branches of the military.
Palantir has recently begun aggressive expansion into the corporate world winning clients such as Rio Tinto, Proctor&Gamble and IBM.
PLTR Stock News
Palantir has developed possibly the most sophisticated data analysis software available. The software mines through enormous amounts of data making connections beyond human capabilities. Given the secretive nature of the company and its highly sensitive client base, it was a surprise to many when the company launched on the stock market. However, that has enabled it to raise capital to expand into the corporate world while maintaining its strong government client base.
PLTR Results disappoint
Investors had been hoping to see continued progress in the Q4 results release on Tuesday. However Palantir posted a surprising EPS loss, but PLTR did impress on sales growth. Palantir also forecasted sales growth of 30% yearly out to 2025, this is what caught the attention of Goldman Sachs. "With improving visibility into near- and long-term growth, we believe PLTR should trade more in line with 30%+ growth businesses, which are trading at 44x CY21 sales, our new target multiple for PLTR on SNTM sales." However other Wall Street analysts were less bullish. Morgan Stanley maintained an Underperform rating and upped the price target from $17 to $19. William Blair downgraded the stock from Market Perform to Underperform. Credit Suisse maintained an Underperform and lifted the price target from $17 to $20.
However this did not stop noted technology investor Cathie Wood of ARK Invest from buying into Palantir. ARK Invest said "if short erm in focus, best to stay away from Palantir", but also said some of the most impotant innovations of our lifetime have "started in government" and Palantirs attituede is "refreshing in investing aggressively". On Tuesday ARK invest purchased over 1.5 million shares in Palantir.
Palantir Technical analysis
We have some key support levels being tested. Bullish trend channel support has been broken and the last chance for the bullish trend is support at $25.82.
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