To The Moon

I have previous wrote an article on Palantir Teasing Early Breakout WIth Nvidia Inching New Highs, Palantir was teasing the breakout level at $23.80, which it managed to break when it closed at $23.85 on Tuesday (12 June).

So in this article, I would like to revisit the analysis I did and see if Palantir would be able to clear $25 and go above and what could be stopping this enterprise artificial intelligence software companies.

Other Enterprise Software Results Show Uncertainty

$Palantir Technologies Inc.(PLTR)$ lacklustre performance over the past weeks have something to do with the elevated uncertainty coming from the earnings results of fellow enterprise software companies.

Market have been getting mixed results from a number of software companies in recent weeks, this has created some uncertainty on whether the strength of enterprise software demand are still going strong?

What I can think of would be these macro conditions that is creating weakness in demand, because enterprise customers are planning or preparing to renew their cost-cutting efforts especially on AI projects taking the share of IT budgets, this is because there is some uncertainty and indecision on the economic condition.

It was reported that 96% of CIOs want to increase their AI investments, but only around 20% expect IT budgets to increase by more than 10%. As seen from the number of software companies which has reported slowdown in their demand at earnings, this could generally occurred across all customer segments. So this might be more than a macro issue.

If we looked at the segment market size, the one that would continue to grow would be AI software platform, so we need to understand the demand for Palantir AIP platform.

Palantir Trading In Upper Band (Fibonacci)

While Palantir is working towards the 27 price level, we could see that the new breakout level is at 23.94, and now Palantir is trading in the upper band of the fibonacci, we would need Palantir to break through it and then $25 should be not an issue.

Palantir Breaking $23.85 Is Key

On Tuesday (11 June), we saw Palantir showing rebounding strength by jumping above the previous week 50-day moving average.

But it is still staying around $23.80, and we need Palantir to clear this level and stayed above for at least 3 trading session.

Summary

Palantir enterprise software demand which complement AI deployment could be key, compared to other enterprise software, they have some key advantage, but we need to look at the customers that Palantir acquire, these enterprise customers have a longer runway for their budget spending.

So if we were to compare enterprise software, we need to look closely whether the customer based is having a larger budget share.

Appreciate if you could share your thoughts in the comment section whether you think Palantir would be able to clear the 23.85 level today (12 June 2024)?

@TigerStars @Daily_Discussion @Tiger_Earnings @TigerWire appreciate if you could feature this article so that fellow tiger would benefit from my investing and trading thoughts.

Disclaimer: The analysis and result presented does not recommend or suggest any investing in the said stock. This is purely for Analysis.