PLTR : Messi of Artificial Intelligence ?
Angels heralding the Good News.
During the last Fri, 25 Oct 2024’s trading session, share price of software giant $Palantir Technologies Inc.(PLTR)$ continued its upward momentum, reaching a new all-time high of $45 per share intraday and breaking a market cap of $100 billion for the first time.
Following this rally, Wedbush’s Dan Ives in a “X” post referred to Palantir as the “Messi of AI,” likening the company’s growth in artificial intelligence to Argentinian soccer star Lionel Messi.
The analyst, who initially projected that PLTR would reach $45, indicated that the company will likely grow further in 2025.
He highlighted potential benefits from the expanding AI-driven market, positioning Palantir and its CEO, Alex Karp, at the forefront of the AI revolution.
Bullish Dan?
Dan Ives’s bullishness can be found in his early October notes to investors:
He issued PLTR an “Outperform” rating.
He stated that more enterprises are strategically exploring how to integrate Palantir’s Artificial Intelligence Platform (AIP) in 2025.
Extracts of companies that benefitted from AIP deployment so far, include:
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$Airbus SE(EADSY)$ accelerated A350 production by +33%.
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$BP PLC(BP)$ reduced costs per barrel by -60%.
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Jacobs Connect cut power usage by -30%.
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Panasonic decreased waste by -12%.
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ESI Group sped up ERP harmonization by +70%.
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PG&E reduced transformer ignitions by -65%.
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Eaton boosted productivity by +25%.
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Tyson Foods achieved $200 million in cost savings.
PLTR is in a prime spot to continue expanding its pipeline / deal flow while providing more use cases coming forward to address critical problems across industries noted Wedbush.
PLTR’s ability to sustain the momentum will partly depend on the upcoming Q3 earnings report, where the company is expected to demonstrate increased revenue, mainly through its venture into AI.
Q2 Earnings Recap: Notably, in Q2, the firm’s revenue increased by +27% YoY to reach $678.1 million.
The growth led analysts to revise Palantir’s full-year revenue guidance to $2.746 billion.
PLTR’s Rally ?
Not all market players view the PLTR bull run as sustainable.
Concerns have been raised that the stock’s rally might not entirely reflect the company’s actual valuation.
These fears suggest the stock might be overvalued and could face a potential correction in the near future, which some analysts have flagged as a red flag.
DM Martins Research, Market research analyst - Bernard Zambonin, issued the following warnings:
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Investors should cautiously approach the upcoming PLTR’s earnings report.
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He noted PLTR rely heavily on positive annual guidance updates to bolster demand perceptions is risky, particularly when forecasts fall short.
The lingering uncertainty has also prompted mixed outlooks for PLTR from other Wall Street analysts.
For example,
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Raymond James downgraded PLTR to ‘Market Perform’ from ‘Outperform’.
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BofA Securities maintained a ‘Buy’ rating.
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Canaccord Genuity kept a ‘Hold’ rating on PLTR’s share price.
What Is Next ?
PLTR stock was trading at $44.86 as of press time, rallying almost +3% in the past 24 hours, on Fri, 25 Oct 2024.
YTD, the equity has surged +170% in 2024. (see above)
On 25 Oct 2024, stock trading expert Market Maestro posted on X, claiming that looking at the next price trajectory, PLTR stock price could rise further. (see above)
He based this on observation that PLTR has formed a bullish cup-and-handle pattern on the weekly chart, with a right shoulder (RS) formation. (see above)
This indicates a possible support retest before a breakout toward higher price targets.
Institutional money flow indicators support this bullish outlook, showing increased interest from large investors.
After reaching the $45 record high, the next upside target remains at $50, a price target backed by $Bank of America(BAC)$.
PLTR fans, are we at a cross road? Turn left allows us to exit and take profit now. However turn right, we just might attain ideal $50 and then some more. Be thankful or be greedy? Dilemma..
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Do you think Palantir will continue to fall or rise on Fri, 01 Nov 2024?
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Do you think Palantir is “Messi” of AI, just like what Dan Ives has proclaimed ?
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