Palantir's Stock Dips Amid AI Advancements and Defense Deals: A Closer Look at the Tech Giant's Future

Palantir's Stock Takes A Hit: Will AIPCon And Defense Deals Be The Comeback Catalyst? - Palantir Technologies (NASDAQ:PLTR)

Find out which stock just plummeted to the bottom of the new Benzinga Rankings. Updated daily -- spot the biggest red flags before it's too late. Palantir Technologies Inc PLTR has been on a wild ride - up 215.99% over the past year, but down 33.51% in just the last month. The stock is now stuck below its key moving averages, flashing strong bearish signals. Can the upcoming AIPCon and a wave of high-profile deals set PLTR up for a turnaround? Is PLTR Stock Facing A Technical Knockout? Chart created using Benzinga Pro PLTR stock, at $78.05, is trading below its five, 20 and 50-day exponential moving averages, signaling continued selling pressure. The eight-day simple moving average (SMA) at $81.98, 20-day SMA at $94.60 and 50-day SMA at $86.96 all suggest the stock is still in bearish territory. However, the 200-day SMA at $51.95 paints a different picture, hinting at longer-term strength. Momentum indicators aren't helping the bulls either. The MACD at a negative 3.95 is firmly bearish, while the RSI at 39.82 signals PLTR stock isn't quite oversold yet. Read Also: Palantir Calls For 'Software-First Approach' As Pentagon Spends Under 1% On Modern Warfare AIPCon & New Deals: Can They Break The Trend? Palantir is gearing up for its sixth AIPCon on March 13, where it will showcase new AI-driven partnerships. Big-name customers like Heineken NV HEINY, Walgreens Boots Alliance Inc WBA and AT&T Inc T are on board, while fresh government contracts, including a $178 million defense deal for mobile battle stations, keep rolling in. On the tech front, Palantir is strengthening its grip in autonomous drones (Ondas Holdings partnership) and space security (Voyager Technologies collaboration). But will these be enough to shift sentiment? Long-Term Bulls Vs. Short-Term Bears Despite its expanding influence, Palantir's stock is stuck in a bearish trend. AIPCon could provide the narrative boost bulls need, but the technicals suggest caution. For now, the stock remains a battleground between long-term believers and short-term skeptics. Will Palantir stock break free from this slump or is the AI hype cooling off? Investors will be watching closely. Read Next: Nasdaq, S&P 500 Hit 6-Month Lows As Recession Fears Grow: What's Driving Markets Monday? Photo: Shutterstock PLTRPalantir Technologies Inc $81.975.02% Stock Score Locked: Want to See it? Benzinga Rankings give you vital metrics on any stock - anytime. Reveal Full Score Edge Rankings Momentum98.75 Growth37.18 Quality- Value3.22 Price Trend Short Medium Long Overview HEINYHeineken NV $43.730.32% TAT&T Inc $25.84-0.65% WBAWalgreens Boots Alliance Inc $11.230.18% Market News and Data brought to you by Benzinga APIs

Artificial Intelligence Juggernaut Palantir Is Down 32%. Is It Time to Buy the Dip in the Stock?

Is the party finally over for the shares of Palantir Technologies (PLTR 2.84%)? It took just over two years for the stock to rise from the $6 per share range to the all-time closing high of $124.62 per share. Still, within less than a month, it has surrendered 32% of its value. Admittedly, most of the run-up occurred over the previous four months, which may add to the uncertainty about its price. Hence, the question for investors is whether the 32% decline is a natural pullback after a rapid increase, or is it just the beginning of a longer-term decline to come. Palantir's changing business Before Palantir launched its IPO in 2020, its AI-driven analysis technology earned credit for helping U.S. intelligence agencies find Osama bin Laden. Also, noting the relatively limited client base on the government side of the business with its Gotham platform, the company created the Foundry platform to bring this technology to commercial customers. However, the platform that has become most game-changing for Palantir is its Artificial Intelligence Platform, better known as AIP. Organizations credited this generative AI platform with delivering massive productivity gains. In its fourth-quarter 2024 earnings call, Palantir cited an insurance organization that applied AIP to automate underwriting workflows. It took what was a two-week process and completed the work in three hours. The company also told the story of a telecom company that used AIP to help decommission aging technology and equipment more rapidly. Effects on the company's numbers Such stories likely helped fuel the aforementioned run-up in its stock price. Nonetheless, investors should question whether the company's financial performance justifies the massive increase. In 2024, revenue of almost $2.9 billion rose 29% compared to 2023. Moreover, revenue rising by 36% yearly in Q4 points to increasing growth rates. Plus, U.S. revenue grew 38% annually in 2024, which could bode especially well for Palantir since the U.S. accounted for about two-thirds of overall revenue. Additionally, net income in 2024 totaled $462 million, up by 120% year over year, which could arguably help it justify a higher valuation. Still, investors may feel increasingly uncomfortable about the stock's valuation. They may overlook the P/E ratio of around 450 since the company only turned profitable on a yearly basis in 2023. However, the forward P/E ratio of approximately 150 makes it likely the stock price is far ahead of company fundamentals. Investors may also struggle to justify a price-to-sales (P/S) ratio of over 70, especially since that valuation comes after the 32% pullback. Furthermore, growth is likely on track to slow, according to the company itself. In 2025, Palantir forecasts revenue of $3.75 billion at the midpoint, which would amount to a 32% increase from 2024 levels. Most investors would objectively perceive that as a rapid growth rate. Nonetheless, investors often punish stocks for slowing growth, which could hurt Palantir's shares in the near term. Is it time to buy the dip in Palantir stock? Given the productivity gains that companies have made using its AIP platform, Palantir's business should continue to grow rapidly for the foreseeable future. Still, the stock price has likely risen far ahead of its current and future growth, which could lead to lower (or possibly negative) returns for the stock's recent investors in the short and medium term. For now, investors should keep the stock on a watchlist. If valuations fall to more reasonable levels, it will may be worth considering, but at these levels, it is more likely to continue falling before fomenting a sustained recovery.

Palantir's Playbook: What Comes Next for the AI Giant? | Investing.com UK

On Thursday, March 13th, Palantir Technologies (NASDAQ:PLTR) is scheduled to host the sixth AIPCon, standing for Artificial Intelligence Platform (AIP) Conference. Previously, in early December 2024, the intelligence software company launched its Warp Speed operating system, specifically designed to streamline manufacturing in sync with President Trump's re-industrialization initiative. At that time, Warp Speed included Anduril Industries, L3Harris, Shield AI, and Panasonic Energy of North America (PENA) as first clients. The sixth AIPCon will unveil how other companies are utilizing Palantir's tech, from Red Cat, Saildrone and SNC to Ursa Major. Additionally, Palantir gained new clients. Most notably, Heineken, Walgreens, {{|R1 RCM}}, RaceTrac and Ripcord. Ahead of the AIPCon, PLTR stock is priced at $83.76 per share, having gained 11% value year-to-date after a steep drop in late February from its all-time high of $124.62 per share. The question is, should retail investors jump into PLTR exposure to preempt AIPCon impressions? Under the Arsenal OS platform, Warp Speed gives manufacturers tools to break down complex production processes to boost operational efficiency. Anduril Industries, known for its unmanned aerial systems (UAS), made the case in late November that Warp Speed enhanced their material resource planning by 200x. Dubbed as the "manufacturing OS for American re-industrialization", Warp Speed is flexible enough to attach to existing manufacturing systems. The company leadership can then gain new operational insights by feeding data into Warp Speed's modules. This is all made possible with the operational layer called Ontology, named for the philosophical study of being. By defining semantics into objects and properties, Ontology framework creates a digital mirror of the organization and its physical assets. The digital twin of the company then provides contextual relationships between objects and actions, making it easier to visualize data, reveal patterns, trends, anomalies and ultimately remove manufacturing choke points. Previously, Palantir boasted that its data integration platform Foundry used Ontology to more effectively deploy vaccination efforts during the pandemic narrative. "Foundry, a configuration of the Palantir Platform, is helping to facilitate pandemic management across agencies such as HHS, CDC, FEMA, DOD, NIH, and FDA during the COVID-19 outbreak." It took President Trump's second term to start distancing himself from the pandemic narrative, as he signed an Executive Order (EO) to prohibit federal funding for Covid-19 vaccine mandates in schools. As previously covered in Palantir as a dark horse AI stock, the company is positioning itself as the AI-powered layer of governance, both commercial and nation-state. In the context of the US, this translates to hegemony technology provider, facilitating the analysis of Big Data and centralized data control from disparate sources. Palantir CEO Alex Karp is often seen at high-level meetings with Elon Musk and government officials. Musk's Department of Government Efficiency (DOGE) is aiming to reduce government waste by at least $1 trillion, already having made historic revelations by exposing USAID patronage networks. Karp sees this development as beneficial for the company in the long run. In Q4 2024 earnings call on February 3rd, Palantir CEO noted that "whatever is good for America will be good for Americans and very good for Palantir." He further expressed optimism on the overall direction of the US. "There's a revolution. Some people get their heads cut off. Like -- you know, it's like, we're expecting to see really unexpected things and to win basically. That's what we're going to do. See unexpected things, report expected things, and win. And we're planning to do that, and we're pretty optimistic about the U.S. environment." For the quarter, Palantir's revenue grew year-over-year by 36% to $828 million. Karp sees such impressive growth as a "new phase" for Palantir's business, one that is gaining both commercial and government momentum. With government contract sales growing 45% year-over-year to $1.2 billion annual sales, it is then reasonable to extrapolate that Palantir will keep accruing more commercial clients. After all, with granular AI tools that have already shown efficacy in the real world, large businesses can ill-afford to remain behind. Most recently, Palantir delivered two TITAN systems to the U.S. Army. The Tactical Intelligence Targeting Access Node systems make use of AI to collect and analyze data from various sensors, which is then delivered to the boots on the ground. Palantir won that contract last year, worth $178 million, beating its competitor RTX Corporation. According to Wall Street Journal, the average PLTR price target is $95.28 vs the current price of $83.76 per share. The ceiling target has double the profit potential, at $160, while the low estimate holds at $40 per share. In the scenario of recession as officially announced, it is likely that the stock market will undergo another major price correction. At that time, PLTR shares should be considered as the optimal exposure for long-term play. *** Neither the author, Tim Fries, nor this website, The Tokenist, provide financial advice. Please consult our website policy prior to making financial decisions.