Palantir鈥檚 Momentum Persists Despite Market Worries
After shrugging off the Fed-induced correction, Palantir’s earnings report will be the next opportunity for the bulls or bears to be proven right
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stock is flat in the four days after the company was named to be part of the NASDAQ 100 starting on December 23, 2024. But that’s because of a pullback of over 5%, which correlates to the broader market pullback after the Federal Reserve鈥檚 decision on interest rates on December 18.
Is this the major correction analysts have been predicting鈥攐r even hoping for鈥攊n Palantir stock? A pullback in PLTR shares seems more likely than not at this point. However, as of late trading on December 19, PLTR stock had made up most of the prior day鈥檚 losses and is up 314% in 2024.
Still,聽many analysts continue to question Palantir鈥檚 extended valuation. The stock trades at over 65x sales and has a forward price-to-earnings (P/E) ratio of 361x. Even among , that鈥檚 a stiff premium to pay.
The party can鈥檛 last forever, can it? If you鈥檙e in PLTR stock for the long haul, you really don鈥檛 care. But if you鈥檙e looking to trade the stock, it matters a lot. Let鈥檚 look at the state of play for Palantir heading into 2025.
Palantir Continues to Stack Wins
Palantir鈥檚 inclusion in the NASDAQ 100 isn鈥檛 the only bullish news for the stock.聽The company announced deals with聽 and Anduril in early December. Both contracts will expand the company鈥檚 work with the U.S. government to ensure that it can lead the world in artificial intelligence.
Some of the specific work that Palantir does with the U.S. government is secret, but it鈥檚 not a secret that the U.S. government is Palantir鈥檚 largest customer. That鈥檚 one reason the deals with Booze Allen and Anduril are significant.
However, the company has lined up two additional contracts in the last month. On December 18, Palantir announced a $401 million contract extension related to its AI-powered Army Vantage platform. The contract, which spans four years, may have a total ceiling value of over $619 million.
The surge in Palantir stock is due to more than just the company鈥檚 government business. The commercial side of the business now accounts for nearly 50% of the company鈥檚 revenue and shows that the company is attracting clients as diverse as Pray.com and .
Palantir Offers Investors More Than a Semantic Difference
The bearish argument for avoiding Palantir is that the stock is overvalued. By any objective measure, it is. Therefore, many analysts will repeat the mantra that investors should avoid investing in a company based on the premise that 鈥渢his time it鈥檚 different.鈥
As someone who values precise language, I鈥檇 argue that Palantir isn鈥檛 just different鈥攊t鈥檚 unique. No other company is currently doing what Palantir does with artificial intelligence, and that鈥檚 unlikely to change anytime soon. This distinct market position reshapes how many investors perceive the stock, supporting a continued upward bias for PLTR well into 2025.
The company鈥檚 ontology allows it to make AI a key part of its operations. And it does so in a way that shows other companies and investors how AI can be monetized. In that respect, it鈥檚 not only logical that the U.S. government is not only maintaining but also extending its contracts with Palantir.
PLTR Stock Is Due for a Correction, But Earnings May Be a Better Bet
Institutional investors are frequently at odds with retail investors, but never more so than at the end of a year. While many retail investors are looking to trim positions to take profits or as part of a tax-loss strategy, institutions are frequently hitting the Buy button.聽
That’s because they don鈥檛 want to be caught offside with their clients. Therefore, they want to be sure to have exposure to stocks like PLTR heading into 2025. That should hold support on PLTR stock at around $70. And if there鈥檚 a Santa Claus rally, the stock could even push through $80, as it did earlier this month.
After that, the next mover will be the company鈥檚 earnings report, which won鈥檛 happen until February 2025. With expectations so high, it鈥檚 not hard to see the company missing on earnings in the same way that missed. And that could be a reason for the stock to correct, particularly with the broader market set for a choppy start to 2025.
stock is flat in the four days after the company was named to be part of the NASDAQ 100 starting on December 23, 2024. But that’s because of a pullback of over 5%, which correlates to the broader market pullback after the Federal Reserve鈥檚 decision on interest rates on December 18.
Is this the major correction analysts have been predicting鈥攐r even hoping for鈥攊n Palantir stock? A pullback in PLTR shares seems more likely than not at this point. However, as of late trading on December 19, PLTR stock had made up most of the prior day鈥檚 losses and is up 314% in 2024.
Still,聽many analysts continue to question Palantir鈥檚 extended valuation. The stock trades at over 65x sales and has a forward price-to-earnings (P/E) ratio of 361x. Even among , that鈥檚 a stiff premium to pay.
The party can鈥檛 last forever, can it? If you鈥檙e in PLTR stock for the long haul, you really don鈥檛 care. But if you鈥檙e looking to trade the stock, it matters a lot. Let鈥檚 look at the state of play for Palantir heading into 2025.
Palantir Continues to Stack Wins
Palantir鈥檚 inclusion in the NASDAQ 100 isn鈥檛 the only bullish news for the stock.聽The company announced deals with聽 and Anduril in early December. Both contracts will expand the company鈥檚 work with the U.S. government to ensure that it can lead the world in artificial intelligence.
Some of the specific work that Palantir does with the U.S. government is secret, but it鈥檚 not a secret that the U.S. government is Palantir鈥檚 largest customer. That鈥檚 one reason the deals with Booze Allen and Anduril are significant.
However, the company has lined up two additional contracts in the last month. On December 18, Palantir announced a $401 million contract extension related to its AI-powered Army Vantage platform. The contract, which spans four years, may have a total ceiling value of over $619 million.
The surge in Palantir stock is due to more than just the company鈥檚 government business. The commercial side of the business now accounts for nearly 50% of the company鈥檚 revenue and shows that the company is attracting clients as diverse as Pray.com and .
Palantir Offers Investors More Than a Semantic Difference
The bearish argument for avoiding Palantir is that the stock is overvalued. By any objective measure, it is. Therefore, many analysts will repeat the mantra that investors should avoid investing in a company based on the premise that 鈥渢his time it鈥檚 different.鈥
As someone who values precise language, I鈥檇 argue that Palantir isn鈥檛 just different鈥攊t鈥檚 unique. No other company is currently doing what Palantir does with artificial intelligence, and that鈥檚 unlikely to change anytime soon. This distinct market position reshapes how many investors perceive the stock, supporting a continued upward bias for PLTR well into 2025.
The company鈥檚 ontology allows it to make AI a key part of its operations. And it does so in a way that shows other companies and investors how AI can be monetized. In that respect, it鈥檚 not only logical that the U.S. government is not only maintaining but also extending its contracts with Palantir.
PLTR Stock Is Due for a Correction, But Earnings May Be a Better Bet
Institutional investors are frequently at odds with retail investors, but never more so than at the end of a year. While many retail investors are looking to trim positions to take profits or as part of a tax-loss strategy, institutions are frequently hitting the Buy button.聽
That’s because they don鈥檛 want to be caught offside with their clients. Therefore, they want to be sure to have exposure to stocks like PLTR heading into 2025. That should hold support on PLTR stock at around $70. And if there鈥檚 a Santa Claus rally, the stock could even push through $80, as it did earlier this month.
After that, the next mover will be the company鈥檚 earnings report, which won鈥檛 happen until February 2025. With expectations so high, it鈥檚 not hard to see the company missing on earnings in the same way that missed. And that could be a reason for the stock to correct, particularly with the broader market set for a choppy start to 2025.
