Palantir Technologies (NYSE: PLTR) is nearing the $40 mark, fueled by robust, ongoing momentum and a considerable amount of investor excitement.
As of the latest update, the stock is priced at $39.58 — although it has seen a slight decline of 0.47% for the day, this is likely just a temporary dip.
The price of PLTR has risen by 8.68% over the past week, 29.41% over the past month, and is currently up 138.51% year-to-date (YTD).
Will PLTR break higher?
In the past month, PLTR has fluctuated within the $29.50 to $39.29 range and is currently approaching the upper end of that spectrum.
Palantir’s impressive revenue growth, combined with an insatiable demand for AI solutions, has led to strong price movement throughout 2024. This momentum is so powerful that it has overshadowed the recent $600 million sale of PLTR shares by CEO and founder Peter Thiel, which had little effect on the stock’s value.
In total, Thiel has sold over $1 billion in Palantir stock, although these transactions were made under the provisions of SEC rule 10b5-1, indicating they were planned in advance.
A particularly strong bullish indicator at the moment is the price targets set by analysts. Mariana Perez Mora from Bank of America (NYSE: BAC) recently added PLTR to the firm’s esteemed U.S. 1 List, raising her price target from $30 to $50. According to TipRanks, Perez Mora has a commendable success rate of 91%, with an average return of 39% from her ratings.
This positive outlook is not isolated; Dan Ives of Wedbush, known for his bullish stance on PLTR, has reiterated his ‘Buy’ rating and increased his price target from $38 to $45.
Bearish perspectives on Palantir
Despite the stock’s impressive performance throughout 2024 and a positive short-term outlook, investors and traders should remain aware of opposing views.
PLTR’s high valuation has consistently raised concerns among institutional investors, although there appears to be a slight easing of consensus. Moreover, the company’s attempts to diversify its revenue away from government contracts toward the private sector have seen some underwhelming results, losing steam with each quarter.
There are also worries that the current high stock prices could prompt significant profit-taking by institutional investors, which would likely trigger a sharp decline in the stock’s value.
The future outlook for Palantir is not universally optimistic, as the company holds a notable number of ‘Sell’ ratings on Wall Street. Numerous analysts express bearish sentiments, with the average price target currently at $27.67, representing a potential decrease of 30.25% from the current stock price.
In conclusion, while it seems highly probable that PLTR will surpass the $40 mark shortly, there are notable concerns regarding the stock’s capability to maintain such elevated price levels in the long run.
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