Palantir's Stock Soars Amid AI Boom and Market Shift, Raising Valuation Concerns

Palantir Tech's $140 Billion Market Cap Gain Is Driven By Trump's Victory And Higher Defense Spending Hope - Is The Stock Overvalued? - Palantir Technologies (NYSE:PLTR)

Shares surged 280% YTD, reaching $61, surpassing Lockheed Martin in market cap at $140 billion. Palantir Technologies Inc PLTR has witnessed a big surge in market value, adding over $23 billion since Donald Trump's victory in the 2024 Presidential election. Investors anticipate increased federal spending on national security, immigration, and space exploration. The company's shares have nearly tripled over the past year, reaching $61 per share and pushing its market capitalization to approximately $140 billion, surpassing principal defense contractor Lockheed Martin LMT. Also Read: Sony Eyes Japan's Kadokawa to Strengthen Gaming and Anime Dominance This growth is fueled by Palantir's deep ties to government agencies and its reputation for delivering cutting-edge data analysis tools. According to the Financial Times, the company's technology has proven valuable, from supporting military operations to streamlining pandemic vaccine distribution. With heightened demand for AI-driven intelligence systems, Palantir's trajectory under Trump's presidency positions it as a potential beneficiary of increased defense and space budgets. Earlier this year, Palantir secured a $480 million Pentagon contract to enhance Project Maven, a key AI battlefield intelligence initiative. This aligns with expectations of broader defense allocations under the Trump administration. Palantir's participation in projects like the Starlab commercial space station further underscores its growing influence in space exploration alongside NASA and private enterprises. FT report says, Palantir's shares trade at one of the highest multiples in the software sector, reflecting optimism around AI advancements and commercial expansion. Launching its AI platform has bolstered private sector revenue, contributing 35% of the company's total. Notable contracts with corporations like CVS Health and BP have fueled this growth, helping Palantir achieve its first profitable year in 2023 with a net income of $144 million in the third quarter. Palantir Technologies stock surged 280% year-to-date. Despite its successes, analysts express concern over Palantir's high valuation. Top hedge funds, including Renaissance Technologies and ARK Investment Management, trimmed their Palantir stakes in the third quarter, offloading over 3 million shares while maintaining significant holdings. Palantir's lofty valuation metrics, such as a P/E ratio of 328.85, spark skepticism among investors who question its ability to sustain its AI-driven growth trajectory. With retail investors holding about 50% of shares, analysts highlight the potential for amplified stock volatility, both upward and downward, driven by shifting market sentiment. CEO Alexander Karp's recent $1.2 billion insider sales have raised concerns about internal confidence despite the company's robust public narrative and strong third-quarter results. CNBC's Jim Cramer highlighted Palantir as one of ten high-growth stocks of 2024, calling it a speculative but promising investment. While recognizing Palantir's substantial market performance, Cramer noted its lofty valuation, advising against immediate purchase. He emphasized including speculative stocks like Palantir in portfolios to boost long-term returns when paired with stable investments. Cramer advocates balancing risk with index funds while keeping speculative picks on watch for future growth opportunities. Is Palantir Tech A Good Stock To Buy? When deciding whether to buy a stock, there are some key fundamentals investors may want to consider. One of these factors is revenue growth. Buying a stock is essentially a bet that the business will continue to grow and generate profits in the future. Palantir Technologies has reported average annual revenue growth of 115.77% over the past 5 years. . It's also important to pay attention to valuation when deciding whether to buy a stock. Palantir Technologies has a forward P/E ratio of 136.99. This means investors are paying $136.99 for each dollar of expected earnings in the future. The average forward P/E ratio of Palantir Technologies's peers is 51.62. Other important metrics to look at include a company's profitability, balance sheet, performance relative to a benchmark index and valuation compared to peers. For in-depth analysis tools and important financial data, check out Benzinga PRO. Price Action: PLTR stock is down 3.08% at $61.04 at the last check on Wednesday. Also Read: Robinhood Targets Affluent Investors With $300 Million TradePMR Deal Photo by Cory Doctorow via Flickr This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors. Market News and Data brought to you by Benzinga APIs

Palantir jumps 9% to a record after announcing move to Nasdaq

Alex Karp, CEO of Palantir Technologies speaks during the Digital X event on September 07, 2021 in Cologne, Germany. Palantir shares continued their torrid run on Friday, soaring as much as 9% to a record, after the developer of software for the military announced plans to transfer its listing to the Nasdaq from the New York Stock Exchange. The stock jumped past $64.50 in afternoon trading, lifting the company's market cap to $147 billion. The shares are now up more than 50% since Palantir's better-than-expected earnings report last week and have almost quadrupled in value this year. Palantir said late Thursday that it expects to begin trading on the Nasdaq on Nov. 26, under its existing ticker symbol "PLTR." While changing listing sites does nothing to alter a company's fundamentals, board member Alexander Moore, a partner at venture firm 8VC, suggested in a post on X that the move could be a win for retail investors because "it will force" billions of dollars in purchases by exchange-traded funds. "Everything we do is to reward and support our retail diamondhands following," Moore wrote, referring to a term popularized in the crypto community for long-term believers. Last Monday after market close, Palantir reported third-quarter earnings and revenue that topped estimates and issued a fourth-quarter forecast that was also ahead of Wall Street's expectations. CEO Alex Karp wrote in the earnings release that the company "absolutely eviscerated this quarter," driven by demand for artificial intelligence technologies. U.S. government revenue increased 40% from a year earlier to $320 million, while U.S. commercial revenue rose 54% to $179 million. On the earnings call, the company highlighted a five-year contract to expand its Maven technology across the U.S. military. Palantir established Maven in 2017 to provide AI tools to the Department of Defense. The post-earnings rally coincides with the period following last week's presidential election. Palantir is seen as a potential beneficiary given the company's ties to the Trump camp. Co-founder and Chairman Peter Thiel was a major booster of Donald Trump's first victorious campaign, though he had a public falling out with Trump in the ensuing years. When asked in June about his position on the 2024 election, Thiel said, "If you hold a gun to my head I'll vote for Trump." Thiel's Palantir holdings have increased in value by about $3.2 billion since the earnings report and $2 billion since the election. In September, S&P Global announced Palantir would join the S&P 500 stock index. Analysts at Argus Research say the rally has pushed the stock too high given the current financials and growth projections. The analysts still have a long-term buy rating on the stock and said in a report last week that the company had a "stellar" quarter, but they downgraded their 12-month recommendation to a hold. The stock "may be getting ahead of what the company fundamentals can support," the analysts wrote.

Why Palantir Technologies Stock Rallied on Friday | The Motley Fool

The catalyst that sent the artificial intelligence (AI) software and data mining specialist higher was an announcement that its shares would begin trading on a new stock market exchange. An announcement that dropped after the market close on Thursday revealed that Palantir planned to transfer the listing of its common shares to the Nasdaq Global Select Market, aka Nasdaq, from the New York Stock Exchange. Palantir stock, which will retain its ticker symbol -- PLTR -- is expected to begin trading on the Nasdaq exchange on Tuesday, Nov. 26, 2024. The company also noted that "Palantir anticipates meeting the eligibility requirements of the Nasdaq-100 Index." This follows Palantir's recent admission to the S&P 500 on Sept. 23. Stocks often get a boost when they initially join a benchmark index because institutional investors and index funds that track these major market indexes buy shares of the stock. That Palantir is joining the Nasdaq isn't necessarily a reason to buy the stock, even if the company makes the cut for the Nasdaq-100. That said, there are still reasons to be bullish. Palantir's long history of AI and data mining experience led to the development of its Artificial Intelligence Platform (AIP), which has propelled its U.S. commercial business to new heights. Customers work with Palantir engineers at the company's boot camps to develop AI tools that solve real-world business problems. In the third quarter, its U.S. commercial revenue jumped 54% year over year, and the segment's customer count grew 77%. This illustrates that Palantir is no longer solely dependent on its military and government contracts. Its valuation isn't for the faint of heart. The stock is currently trading for 169 times forward earnings and 42 times forward sales. However, its forward price/earnings-to-growth (PEG) ratio -- which factors in its stunning growth -- comes in at 0.5, when any number less than 1 is the standard for an undervalued stock.

Palantir's recent drop: Minor retracement or red flag?: By Prakash Bhudia

Palantir Technologies (PLTR) has had an extraordinary year in 2024, with its stock delivering a staggering 270.87% year-to-date (YTD) gain. Often considered a darling of the data analytics and AI revolution, the company has consistently outpaced major players, even leaving Nvidia in its wake. But after months of relentless upward momentum, Monday's sharp decline has left investors wondering: is this just a minor retracement, or a potential red flag for the stock's future? Palantir has ridden a wave of optimism, fueled by strong quarterly performances and increasing institutional interest. With hedge funds and major institutions like the Swiss National Bank ramping up their stakes, confidence in Palantir's future seemed unshakable. However, the stock took an unexpected hit in Monday's session, mostly erasing its 11% rally from the November 15 session and falling over 7% in 24 hours. At one point, shares plunged by 10%, dipping below $60 before recovering slightly to close at $60.99. This sharp sell-off has come as a surprise to many, given Palantir's robust market position and growing appeal among institutional investors. It begs the question: what triggered the sudden dip? At the heart of this retracement lies a now-deleted X post by Palantir board member and 8VC partner Alex Moore. In a message that sparked backlash, Moore claimed that the company's recently announced decision to shift its listing from the New York Stock Exchange (NYSE) to the Nasdaq would "force billions in ETF buying." He went on to state that "everything we do is to reward and support our retail diamondhands following." While Palantir's move to Nasdaq, effective November 26, is expected to drive significant capital inflows -- likely leading to its inclusion in the Nasdaq-100 Index -- Moore's casual, meme-heavy tone raised concerns. The use of slang like "tendies," a term popular in stock market meme culture referring to profits, added to the unease. Critics questioned whether such communication was appropriate for a company primarily dealing with government and military contracts. The incident has also renewed scrutiny over Palantir's governance and corporate priorities. Despite yesterday's turbulence, Palantir has shown signs of stabilisation, reclaiming the $60 support level after briefly dipping below it. Some investors are brushing off the sell-off as a minor retracement in a stock that has already delivered exceptional gains this year. They argue that the fundamentals remain strong, with Palantir continuing to solidify its position as a leader in AI-driven analytics. Others, however, see the decline as a potential warning sign. With the stock trading at a forward price-to-earnings (P/E) ratio of 144, questions about overvaluation are hard to ignore. While Palantir's growth story is compelling, the sky-high valuation leaves little room for error. Critics worry that the stock may already be pricing in significant future growth, making it vulnerable to any missteps or unmet expectations. Adding to the uncertainty is insider selling by CEO Alex Karp, who offloaded 6.32 million shares worth $398 million on November 13. Although the sale was pre-planned under a 10b5-1 trading plan, it has fueled speculation about whether the stock is nearing its peak. Karp still holds over 107 million shares, but the timing of the sale has not gone unnoticed by wary investors. Is this just a temporary pause in an otherwise stellar year, or a harbinger of more significant issues to come? The answer may hinge on how Palantir navigates its transition to Nasdaq and whether it can continue to deliver results that justify its lofty valuation. At the time of writing, the stock is seeing a rebound and is back above the $60 mark, with upward pressure still evident. However, the RSI is still deep in the overbought territory and with the price edging back towards the upper Bollinger band, the chart hints at a possible slow down. Buyers could face a hurdle at the $64.84 mark with a further move upwards potentially holding at the $66 mark. On the downside, a slump could hold at the $61.30 and the $58.35 price levels. The information contained within this article is for educational purposes only and is not intended as financial or investment advice. It is considered accurate and correct at the date of publication. Changes in circumstances after the time of publication may impact the accuracy of the information. The performance figures quoted refer to the past, and past performance is not a guarantee of future performance or a reliable guide to future performance.

What's Going On With Palantir Technologies Stock Today? - Palantir Technologies (NYSE:PLTR)

Palantir Technologies Inc. PLTR shares are trading higher on Friday. Yesterday, the firm announced that it will transfer the listing of its Class A Common Stock to the Nasdaq Global Select Market from the New York Stock Exchange. The company expects to begin trading as a Nasdaq-listed company on November 26. According to Benzinga Pro, PLTR stock has gained over 196% in the past year. Investors can gain exposure to the stock via REX AI Equity Premium Income ETF AIPI. Meanwhile, Palantir held its first-ever Developer Conference, DevCon 2024, on November 13th-14th, bringing together 150 top commercial and government builders, as well as technical leaders. Check This Out: Jim Simons' Renaissance Technologies Shifts Gears: Microsoft In, Tesla Out, Palantir On Top The two-day event showcased a series of product launches, hands-on development opportunities, and a competitive environment aimed at accelerating innovation in data and technology. A key highlight of the conference was the public launch of new features for AIP for Developers. This marks a significant step in Palantir's strategy to streamline backend development, enabling faster and more efficient transitions from prototype to production. Among the new releases were updates such as Ontology SDK 2.0, enhanced Platform APIs, and the Workflow Builder. Palantir has been one of the hottest stocks of the year, having gained approximately 245% year-to-date, driven by the company's positioning in the AI space. Palantir shares really took off at the beginning of November after the company reported strong quarterly results driven by "unrelenting" AI demand. Revenue jumped 30% year-over-year on continued strength in the U.S. customer count grew 39% year-over-year after the company closed 104 deals worth over $1 million during the quarter. Price Action: PLTR shares are trading higher by 6.31% to $62.91 at last check Friday. Image via Shutterstock Read Next: What's Going On With Kraft Heinz Stock Today? This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors. Market News and Data brought to you by Benzinga APIs

Palantir Stock Is Rising After The Bell: What's Going On? - Palantir Technologies (NYSE:PLTR)

Palantir expects to meet the eligibility requirements of the Nasdaq-100 Index upon transferring. Palantir Technologies Inc PLTR shares are trading higher in Thursday's after-hours session after the company announced it will transfer its stock listing to the Nasdaq. What Happened: After the market close on Thursday, Palantir announced that it would transfer the listing of its Class A common stock from the New York Stock Exchange to the Nasdaq Global Select Market. Palantir said it expects to begin trading as a Nasdaq-listed company on Nov. 26. The stock will continue to trade under the ticker symbol "PLTR." "Upon transferring, Palantir anticipates meeting the eligibility requirements of the Nasdaq-100 Index," the company said. Check This Out: Jim Simons' Renaissance Technologies Shifts Gears: Microsoft In, Tesla Out, Palantir On Top Palantir has been one of the hottest stocks of the year, having gained approximately 245% year-to-date, driven by the company's positioning in the AI space. Palantir shares really took off at the beginning of November after the company reported strong quarterly results driven by "unrelenting" AI demand. Revenue jumped 30% year-over-year on continued strength in the U.S. customer count grew 39% year-over-year after the company closed 104 deals worth over $1 million during the quarter. "The growth of our business is accelerating, and our financial performance is exceeding expectations as we meet an unwavering demand for the most advanced artificial intelligence technologies from our U.S. government and commercial customers," Alex Karp, co-founder and CEO of Palantir, said in a letter to shareholders. PLTR Price Action: Palantir shares were up 3.87% in after-hours, trading at $61.47 at the time of publication Thursday, according to Benzinga Pro. Photo: Shutterstock. Market News and Data brought to you by Benzinga APIs

Palantir stock climbs 8% as it changes gears from NYSE to Nasdaq

Airbus CEO says SpaceX is successful because it's a selfish American company Palantir, which recently secured a spot in the S&P 500 index, confirmed that it will retain its ticker symbol, PLTR, after the transition. Trading under the new listing is scheduled to begin on November 26. The company announced that it will transfer the listing of its Class A common shares to the Nasdaq Global Select Market, which represents the exchange's highest tier for companies meeting stringent financial and liquidity requirements. Known for its advanced AI tools used by military and intelligence agencies, Palantir has become a prominent player amid the tech world's ongoing AI surge. The latest move positions Palantir alongside many of its tech-sector peers, reflecting its ambition to solidify its reputation as a key player in the data analytics and artificial intelligence space.