Palantir Technologies, a leader in artificial intelligence (AI) and defense solutions, has been making waves in the stock market. On Wednesday, the company experienced a significant fluctuation, with its stock initially climbing before closing 4% lower at $71.51. This marked its third straight day of losses, aligning with broader market trends.
Despite the setback, Palantir continues to solidify its industry presence. Recently, it secured a $401 million contract extension with the U.S. Army for its cutting-edge Vantage platform, which could eventually reach a total value of $619 million. Furthermore, the company announced a collaboration with Pray.com, a platform dedicated to faith-based content, to accelerate new product rollouts.
Over 2024, Palantir’s stock has skyrocketed by over 300%, earning it the title of top performer in the S&P 500. Its upcoming addition to the Nasdaq 100, set for December 23, is expected to further boost its prominence.
However, analysts are divided on the company’s rapid stock ascent. While some caution against potential overvaluation and anticipate a consolidation phase, the stock’s perfect relative strength rating of 99 and its position above key moving averages highlight its strong momentum.
For investors, potential buy opportunities include a three-weeks-tight pattern at 80.91 or an early entry point at 77.82, as identified by Monday’s high.