- PLTR sees whipsaw on Friday in a choppy session.
- PLTR has struggled for momentum, post Q4 results
- PLTR down nearly 50% from January highs.
Update: Palantir shares finished the day on Friday nearly 3% lower but it could have been a lot worse. Markets bounced sharply from mid-afternoon lows as profit taking and bargain hunting in mega-cap tech names helped all stocks higher. Palantir closed at $23.95, down 3.15% having been as low as $20.18 earlier on Friday.
Palantir stock struggled to regain bullish sentiment yesterday as the stock was boosted by news of a further purchase of PLTR by Cathie Wood of ARK Invest. Palantir shares closed at $24.73, up nearly 5$ on the day.
At the time of writing PLTR stock is trading at $23.99 down 3% in Friday’s pre-market.
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PLTR Stocks News
ARK Invest has been one of the best performing, well known ETF’s recently and is closely watched. On Wednesday ARK Invest posted that it had purchased a further 2.6 million shares in Palantir. This is in addition to earlier purchases by ARK Invest of 3.3 million shares in PLTR on February 26, 5.2 million shares purchased on February 18, and a purchase of 1.5 million shares on February 16. Cathie Wood had appeared on CNBC in mid-February speaking in relation to the earlier price spike in Planaitr that saw the share price move from $25 to $45 in a matter of days she said “if short term in focus, best to stay away from Palantir”, but noted some key developments have ”started in government”, highlighting Palantir’s security community and military client list.
Q4 results from Palantir had appeared to disappoint investors as the company reported a loss of $156 million. However, the surge in the share price was always likely to mean results would struggle to keep up and so it proved.
Post results Goldman Sachs liked what it saw saying guidance for $4 billion in revenue by 2025 was encouraging. Goldman upgraded the stock from neutral to buy and increased their price target from $13 to $34. ”With improving visibility into near- and long-term growth, we believe PLTR should trade more in line with 30%+ growth businesses, which are trading at 44x CY21 sales, our new target multiple for PLTR on SNTM sales,” Goldman said.
PLTR Stock Forecast
Palantir has been struggling to regain its earlier bullishness on the chart, failing to hold above $25. Recently the lock-up period expired. The founders and senior executives were prevented from selling shares until after Q4 results and some selling has been seen from this group. But clearly, investor interest has been peaked by Cathie Wood and Goldman Sachs both being positive on the stock.
Technically PLTR shares need to break above the $25-$26 resistance area. $25.85 is the opening print from Jan 22 when PLTR shares exploded up by 25%. A break here will run into some resistance at $26.97 before then clearing to $30 as the next target and resistance. PLTR really needs to stay above $22.47 to maintain its bullish hopes and consolidation pattern.
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