Palantir Technologies Inc. shares were already having a blockbuster year before the company's announced entry into the S&P 500 back in September catalyzed the rally further.
Now the software company is anticipating entry into a new index, and investors are celebrating the move.
Palantir said Thursday that it plans to switch its listing to the Nasdaq from the New York Stock Exchange, a change that the company expects to take effect on Nov. 26. The move positions Palantir for more index eligibility, as Palantir anticipates meeting the requirements for the Nasdaq 100 index NDX, which is made up of the largest non-financial companies listed on the exchange. The company had a $135 billion market capitalization as of Thursday's close.
Investors can get excited about the prospect of new index entry because it means that funds tracking that index would have to buy Palantir shares. Addition into a high-profile index also serves as another sign of legitimacy to Wall Street.
The stock is having a banner year, up 245% over the course of 2024. That move ranks Palantir second in the S&P 500 SPX on a year-to-date basis, behind only Vistra Corp. $(VST)$, which has seen its stock rise 259%.
Palantir has a fervent base of retail support, and investors have cheered the company's traction in recent quarters. Palantir has been posting accelerating revenue growth and continued profitability as it sees momentum for its artificial-intelligence offering.
The rally in Palantir shares has drawn eyeballs for other reasons, with bearish analysts flagging the stock's expensive valuation. Jefferies analyst Brent Thill flagged a multiple of 38 times estimated 2025 revenue when he downgraded the stock to underperform earlier this month.
