After reporting a relatively small top-line beat, Palantir Technologies Inc. stock is jumping +17% in the after-hours session.
While stronger-than-expected commercial revenues (especially in the U.S.) reflect positively on AIP, Palantir's current growth rate and 2024 growth outlook of 20% y/y is nothing extraordinary.
Despite a decent Q4 showing, Palantir stock looks significantly overvalued, with a potential downside of -33% to fair value.
Introduction
Back in November 2023, I reiterated a neutral view on Palantir Technologies Inc. ( PLTR ) citing an unwarranted valuation premium and overstretched technical charts:
Palantir's improving business fundamentals do not quite justify its significant valuation premium. While I believe in Palantir's AI growth story, the long-term risk/reward for PLTR stock [based on pretty aggressive valuation model assumptions] is unattractive at current levels.
From a technical perspective, Palantir is showing strong momentum as evidenced by its "Momentum" quant factor grade of "A+". That said, Palantir is getting close to "Overbought" territory (Daily RSI > 70), and a technical pullback is very much on the table. While not all technical gaps get filled, most of them do. And, as you can see below, Palantir's chart has two big technical gaps at ~$15 and ~$7.5 that look ripe to be filled.
Palantir PLTR Stock Chart (WeBull Desktop)
At my investing group, we own a ~2.8% position in Palantir (cost-basis: $7.34 per share) within our moonshot growth portfolio. For now, we are not buyers in Palantir; however, if the stock pulls back down to 200-DMA levels at ~$12-13 per share, we will resume accumulation, i.e., slow, staggered buying.
Key Takeaway: Due to unfavorable long-term risk/reward, I rate PLTR stock a "Hold/Neutral/Avoid" at $19.67 per share.
Source: "Palantir Stock: The Retail Army Is Winning, But Is It Too Late To Join The Party?"
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2024-07-29 07:13:00 ET Palantir (NYSE: PLTR) , a data mining and analytics firm that serves the U.S. government and large companies, went public via a direct listing on Sept. 30, 2020. It started trading at $10 and went through some wild swings, but now trades at about $29. The comp...
Palantir Technologies Inc. (NYSE:PLTR, “Palantir”), a leading builder of AI systems for the modern enterprise, and Tree Energy Solutions (“TES”), a global leader in the production of e-NG (electric natural gas derived from green hydrogen), today announced a multi-year ...
2024-07-29 00:00:02 ET Jefferies analyst issues HOLD recommendation for PLTR on July 28, 2024 08:28PM ET. The previous analyst recommendation was Hold. PLTR was trading at $27.18 at issue of the analyst recommendation. The overall analyst consensus : BUY. Current ana...
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