Why I am Still Bullish on Palantir

In my experience, $Palantir Technologies Inc.(PLTR)$ has proven itself as a significant player in the AI and data analytics field, particularly as it continues to outperform expectations. Recently, Palantir’s Q3 2024 results indicated a robust 30% annual revenue increase, reaching $726 million, along with a 100% surge in diluted EPS to $0.06. This is the third time in 2024 that Palantir has raised its revenue guidance, now projecting an impressive $2.805 billion to $2.809 billion in revenue, a signal of strong growth driven by government contracts and a rapidly expanding generative AI business.

PLTR Daily Chart with my trades

I previously anticipated a potential pullback in Palantir’s price, warning about it on October 15 before the market opened - Why Palantir Could Retrace Here. The price indeed dropped 9% from its high, allowing me to capitalize by selling calls and securing a solid premium.

This strategy shift proved timely, as I transitioned to selling puts amid the recent volatility.

My most recent move involved selling puts during the unusual dip in PLTR's price on the last day of October, a trade that has again paid off well with the post-earnings price surge during post market. The price of the put I sold should drop significantly when market opens if nothing dramatically changes.

I plan to hold my shares for the long term, confident in Palantir’s growth trajectory, but will be closing my options trade when market opens to lock in profits. Observing how the price behaves near all-time highs will guide my next move.

Palantir’s achievements this year reflect not only strong revenue growth but also effective cost management, with adjusted income from operations now expected to land between $1.05 billion and $1.06 billion. Palantir’s inclusion in the S&P 500 adds credibility and could attract more institutional investment. I remain optimistic about PLTR’s role in the AI space, particularly with its platform’s capabilities for code testing, debugging, and AI scenario simulations. With AI technologies continually growing, Palantir’s position remains compelling, especially with businesses prioritizing efficient and innovative data solutions.

In Summary

Palantir has cemented itself as a leader in data analytics and AI, with growth and innovation aligning with market demands. While I remain bullish in the long term, I will monitor its near-term price movements closely, particularly around all-time highs, before making further decisions. For now, my strategy is focused on holding shares while cautiously managing options trades to maximize returns during PLTR's anticipated rise.

Given Palantir’s expanding role in AI and its strong government and enterprise partnerships, do you think PLTR has the potential to become a dominant player in the AI field, or do you see potential challenges on the horizon? [Thinking]

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Disclaimer: This is a general analysis and not financial advice. Always conduct your own research before making any investment decisions.