Palantir Technologies Inc. (PLTR stock) rallied 83.43% in the last three months, riding high on the AI bandwagon. It remains to be seen whether this impressive rise can continue. Market experts suspect that the flight was too high too soon, and suggest that investors must be cautious about their entry point. Legendary investor Warren Buffet has shown interest in AI stocks, which is a probable factor causing investors to rally. .
Palantir Technologies Inc. (PLTR Stock) – Financial Analysis
Palantir Technologies called itself “a worldwide leader in Artificial Intelligence” in its Q1 2023 update. To justify this claim, the company extended its partnership with Jacobs Solutions (NYSE: J), intending to commercialize Palaltir’s AI capabilities and provide new solutions expanding across critical infrastructure, advanced facilities, and supply chain management through artificial intelligence.
The company also partnered with Panasonic (OTCMKTS: PCRFY) subsidiary Panasonic Energy of North America, expanding the company’s signature platform, including AI in the manufacturing arena. Additionally, AI stocks like C3.ai increased by 200% in 2023, while OpenAI investor Microsoft (MSFT) hiked by 39%.
At press time, PLTR Stock is trading at $15.28, gaining 4.59% in the last 24 hours; the previous close and open were at $14.61 and $14.53, respectively. The 52-week change shows a growth of 68.47%. The trailing twelve-month (ttm) earnings per share (EPS) is minus $0.12, while the quarterly change in EPS comes with a gain of 150.00% to $0.05.
With an average volume of 57.00 million shares, Palantir’s market cap is $32.37 billion. Analysts provided a 1.79 rating to Reduce the positions and have estimated a price target at $9.54 with a downside of 37.5%. The share price rallied 132.22% YTD but is down by 2.43% weekly.
The last earnings were reported on May 8, 2023, where the reported revenue of $525.186 billion beat the estimated amount of $505.824 billion by 3.83%. The quarterly change in income shows a hike of 17.66% to $525.19 million, while the revenue (ttm) is $1.92 billion. The quarterly revenue growth year-over-year (YoY) increased by 17.70%.
The operating expenses swelled by 5.63% to $413.43 million, and the operating margin dropped by 5.93%. The company’s net income hiked by 116.57% to $16.80 million, the net profit margin jumped by 114.09% to 3.20, and the profit margin suffered by 12.87%.
Total cash at the end of the most recent quarter (mrq) is reported to be $2.9 billion, while total debt in the same duration is $259.49 million. Gross profit (ttm) for Palantir comes up to $1.5 billion.
Palantir Technology (PLTR Stock) – Candle Exploration
After achieving the recent high, the PLTR stock price faced a slight rejection, bouncing off immediate resistance. If the price went north and crossed the supply zone, it would have to cross the $16.82 level confidently and stabilize for a while for confirmation. For some time, the price action shall consolidate in a range.
The EMA’s upward trajectory and Relative strength index’s (RSI) value at 60.68 indicates a bullish trend, and price actions could climb slightly. However, the share price saw a steep incline and could retrace a bit at any time. If so, the price shall bounce off EMA, and breakdown below the demand zone would be a piece of bad news.
Disclaimer:
The views and opinions stated by the author, or any people named in this article, are for informational purposes only and do not establish financial, investment, or other advice. Investing in or trading crypto assets comes with a risk of financial loss.
Nancy J. Allen is a crypto enthusiast and believes that cryptocurrencies inspire people to be their own banks and step aside from traditional monetary exchange systems. She is also intrigued by blockchain technology and its functioning.
Source: https://www.thecoinrepublic.com/2023/06/29/pltr-stock-experts-think-price-rallied-too-high-too-soon/