Thot with turbulence, it will take a bit of time.
Friday's rally helped pushed PLTR to the ATH price.
Thanks in part to good PCE data.
Next 2 resistant levels to watch out will be $83.64 & then $86.73.
Let's aim for $90 as its next ATH. Yay !
PLTR will surge to $80. Possible?
@JC888：
Crowning of a king pin stock - Palantir ? I’m about to post about $Palantir Technologies Inc.(PLTR)$ (again), one of my favorite stocks this year. I have a handful of posts about this AI company. Click to read, if you like. 01 Nov - PLTR : Messi of Artificial Intelligence ? share price $44.86. 12 Nov - 2025 Top 5 - NVDA, PLTR, TSLA +... To Invest. share price $58.39. 16 Nov - PLTR will BOOM! with switch to NASDAQ ? share price $65.77. 21 Nov - Will PLTR & META Tie-Up Sparks Rally ? share price $61.36. Palant-astic 2024? PLTR has a fantastic run this 2024. Just November alone, it has gained +49.53% to end on a high $67.09 per share. YTD it has gained +360.43%. Now, exploring the possibility of PLTR hitting $80 a pop. Possible ? Let’s find out! PLTR is an artificial intelligence (AI)-powered tech stock that has captured Wall Street's imagination in 2024, with a respectable market cap of nearly $150 billion. The company went public in September 2020 at $10 a share. It has since generated returns of +729.78%. Super ! Core Businesses. Palantir builds and deploys software platforms for governments and companies in the US and other international markets. Its products include: Palantir Gotham: A platform allowing users to identify hidden patterns within deep data sets. It helps operators plan and execute real-world responses to threats identified within the platform. Palantir Foundry: A platform that disrupts how enterprises operate as it creates a central operating system for their data, which users can integrate and analyze in a single place. The Questions ? The overriding questions on everyone’s mind : Is PLTR overvalued after its breakout rally this year ? Can PLTR continue moving higher over the next 12 months ? Read on to find supporting evidences to the 2 questions. Q3 Earnings & Q4 Estimates. Strong Q3 Performance. Palantir shares jumped +20% following its solid Q3 earnings results: Earnings per share (adjust) EPS : $0.10 per share vs $0.09 Wall Street consensus. (see above) Revenue: came in at $726 million vs $701 million Wall Street expectations. (see above) Sales have risen by +30%. GAAP net income of $144 million, representing a +20% margin and has more than doubled YoY. Palantir, CEO, Alex Karp has shared: Its revenue beat in Q3 was largely due to “unrelenting AI demand that won’t slow down”. There is strong adoption of AI solutions from the US government base. Q4 2024 Outlook. Projected revenue would be between $767 million and $771 million. Comfortably surpass Wall Street’s consensus estimates of $741.4 million. Adjusted income from operations of between $298 - $302 million. Expects total sales to grow by +26% YoY to $2.81 billion, beating estimates of $2.76 billion. Challenges. PLTR is on target to generate $687 million in sales in US commercial segment for 2024. This will be a +24% YoY gain. However, sales outside the US fell by -7% when compared to the previous quarter. This is due to (a) lower demand from European businesses and (b) a decrease in sales to a government organization in the Middle East Overvalue ? Palantir’s outsized gains in 2024 can be tied to an improving bottom line. In the last 12 months, its net income has risen to $476.6 million, up from $209.8 million. Comparatively, it reported cumulative net losses of over $2 billion between 2020 and 2022. The AI software company has reported a positive free cash flow (FCF) since 2021. Its free cash flow in the last 12 months has totaled $980.3 million, up from $321.2 million in 2019. Analysts expect its FCF to rise to $1.16 billion in 2025 and $1.5 billion in 2026. Further, analysts expect earnings to expand from $0.25 in 2024 to $0.6 in 2026. So, priced at 110x forward earnings, PLTR stock trades at a lofty valuation. Despite that, $Bank of America(BAC)$ : Recommended PLTR a “Buy” rating and raised its price target to a new Street-high of $75 from $55. Explained PLTR’s growth in US markets and a widening competitive moat make it a top investment choice as it now serves a wide range of clients across sectors. Projects its Government business to grow annually by +29% over the next 3 years, up from 24%. Believed PLTR is well-positioned to digitize business processes as companies turn to AI and automation to boost profitability. Expects its Commercial business to grow annually by +34% over the next 3 years, up from earlier forecast 32%, due to rising demand. Other Analysts’ Ratings. However, BofA's bullish opinion is a rare one for Palantir. Out of the 15 analysts covering PLTR stock : 2 recommend a “Strong buy”. 6recommend a “Hold”. 7 suggest a “Moderate sell” or “Strong sell”. The average target price for PLTR is $33.78, indicating a downside of almost -49% from current levels. In contrast, BofA's new $75 target implies expected upside of +11.68%, based on 29 Nov 2024 closing price (see above). Technical Analysis. The bullish sentiment isn't just talk. At $66.05, is flying high above all its major moving averages: 8-day SMA: $63.56 20-day SMA: $58.00. 50-day SMA: $47.68. 200-day SMA: $31.14. Above technical signals underscore a strong uptrend. PLTR’s Moving Average Convergence Divergence (MACD) at 5.51, is another indicator of a buying opportunity. However, PLTR’s Relative strength index (RSI) of 73.03, indicates it is just-in Overbought territory. My viewpoints : (mine only) I like to assume that BofA’s supposedly high price target is due to its factoring of PLTR inclusion in the coming Nasdaq-100 reconstitution. This has been covered in my post dated 16 Nov 2024 - click here ! to read. Nasdaq-100 Inclusion? The NASDAQ 100 reconstitution has kickstarted on 29 Nov 2024. The inclusion algorithm is supposed to be based on Market cap rankings of non-financial companies trading on the Nasdaq Exchange, amongst other ‘less influencing’ factors. The new list of stocks will be announced on the second Friday of December, that is 13 Dec 2024. Should PLTR be included in the new list, it will impact passive funds that tracks and replicate the Nasdaq index. The 3 prominent funds impacted will be (1) $Invesco QQQ(QQQ)$ , (2) $INVESCO ESG NASDAQ 100 ETF(QQMG)$ and (3) $Global X Nasdaq 100 Covered Call ETF(QYLD)$. All 3 funds will be expected to purchase PLTR by 20 Dec 2024 to accurately track the NDX. Collectively, that is $360 billion of AUM, excluding any other NDX-tracking fund. Example of Capital Inflow. Based on Fri, 29 Nov 2024 closing price, PLTR has a Market cap of 150.463B SNPS as example: The current 42nd spot in Nasdaq is occupied by Synopsys Inc. (SNPS). It has an $85 billion market cap (about 76% smaller than PLTR). SNPS currently occupies 0.55% of the Nasdaq portfolio weightage. 0.55% of $360 billion works out to be about $2 billion. Logically, PLTR weightage in Nasdaq-100 should be ‘larger’ than SNPS’s 0.55%. Conservatively, using simple ‘direct proportional’ mathematical calculation, (1.76% x $2 billion = $3.52 billion) will be how much capital will flow into PLTR from QQQ, QQQM, and QYLD alone. Ignoring all companies that maybe included in the revised Nasdaq-100, hypothetically PLTR (if included) should sit somewhere between Honeywell (HON)$ and Applied Materials (AMAT)$., that is position #28. (see below for visualization) Can you visualize the price target of $80 per share now ? Can you also visualize if PLTR failed to make it to the list ? Food for thoughts. Must Read: Click on below titles to access. Repost to share, Like as encouragement ok. Thanks. Magnificent 7 will defy Jobs & Inflation data. SPY’s reign over? Rise of VOO, IVV & SPLG ? DXYZ surge +204% on SpaceX Open Tender news. Do you think it is worth the while to sit on PLTR until after 13 Dec 2024 ? Do you think the 3 funds will know of PLTR inclusion in Nasdaq-100 before official announcement so that they have sufficient time to load up on PLTR ? If you find this post interesting, give it wings! ️ Repost and share the insights ? Do consider “Follow me” and get firsthand read of my daily new post. Thank you. @Daily_Discussion @TigerPM @TigerStars @Tiger_SG @TigerEvents
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.
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