Palantir is not new to risky behaviour. Since the company went public in September 2020, it has seen a considerable rise and a disastrous fall in its stock price.
The company opened with a price of $10, but that was short-lived as the company rode the hype train and began trading upwards of $35!
It was a ridiculous run, fueled by the fear of missing out (FOMO) and hype.
Two years later, we are seeing a similar rally or is it?
PLTR as of May 2023
Artificial intelligence (AI) might be another buzzword companies use to angle their products as futuristic and having some potential.
Take, for example, Meta, which has angled its whole business into developing the metaverse despite a product that has proved helpful for people. Like Web 3.0 and the metaverse, AI might soon be the next big hype.
However, AI is nothing new.
What is generative AI?
Generative artificial intelligence (AI) describes algorithms (such as ChatGPT) that can be used to create new content…
We have seen movies like RoboCop and Terminator, AI that can make our lives easier and do nasty jobs for us. The potential for such technology is almost limitless.
We have seen the potential of ChatGPT to give us new ideas when we’re facing writer’s block, as well as being a constant headache for teachers as students use it for their homework. We have also seen AI art that uses prompts to generate beautiful artwork. However, some might argue that the ‘art’ such programmes create are lifeless and meaningless.
Despite that, AI has shown tremendous potential in almost every aspect of our lives.
Palantir is a data analytics company with many governmental clients. They gather intelligence for counterterrorism and the military. So imagine the reaction when they announced that they would be using AI to be included in their programmes.
This new term is called ‘generative AI’. It is the basis of programmes such as ChatGPT. Generative AI is a form of machine learning whereby they use big data to learn about patterns and make predictions.
Palantir is positioned in a unique space whereby they can use the big data they have collected and churn it into an AI to generate more data-driven decisions and optimise their clients’ processes.
This is gold.
In this information age, data is everything. It might even be worth more than gold.
Having the correct data with the proper understanding of it allows people to make predictions and find weak spots. It is valuable not only for military uses but also for discovering new drugs and predicting patient outcomes.
We can drastically improve the lives of many through the use of AI.
That’s why PLTR stock began to moon when the company announced their Artificial Intelligence Platform.
And it might moon further…
PLTR is now eligible to join the S&P500. This is a big deal.
Consists of the top 500 companies in the United States, joining this prestigious group can see the stock price of PLTR continue to shoot up. Why?
Many funds are tracking the S&P500, from VOO to HLAL; these index funds are buying shares to track the top 500 companies. Then, they balance out the stocks within the funds to ensure they follow the S&P500 as closely as possible.
Therefore, if PLTR is included in the group, we can see a considerable buy from such funds as they have to include PLTR in their composition.
Conclusion
PLTR is considered risky to make a quick profit, especially for those in it. However, long-term holders such as myself must maintain the status quo and continue to the dollar-cost average regardless of the price.
It can be tempting to take profit along the way. However, doing so on a stock like PLTR would not be wise.
This company has long-term potential, and despite AI becoming just another buzzword, this company is more than that.
$Palantir Technologies Inc.(PLTR)$
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