Palantir Technologies Share Price Forecast August 2021 – Time to Buy PLTR?
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Shares of American software company Palantir Technologies (NYSE: PLTR) surged on Thursday, August 12th, after the company delivered strong 2nd quarter growth metrics. PLTR shares closed at $24.89 on August 12th (19:59 UTC-4) with an uptrend of 11.36%.
Palantir Technologies – Technical Analysis
According to the financial statement released by Palantir Technologies, the company has a market cap of $46.712 billion with total assets worth $3.014 billion. The company’s revenue increased by 49% year-over-year to reach $376 million, mainly as a result of higher sales and new customer additions. This was also above the $352.3 million revenue expected by Wall Street.
Technical information about PLTR can reveal some more insights. Oscillators such as Stochastic RSI Fast (3, 3, 14, 14)(88.10), Williams Percent Range (14)(−18.63), Bull Bear Power(3.84), Ultimate Oscillator (7, 14, 28)(54.41) are pointing towards a neutral action. Moving averages such as Exponential Moving Average (100)(22.98), Simple Moving Average (100)(22.92), Exponential Moving Average (200)(22.63) and Simple Moving Average (200)(23.90) are pointing towards buying.
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Recent Developments
Palantir Technologies is responsible for supply analytics solutions to the government which are used by its intelligence and military agencies. The company achieved great success in gaining more commercial clients in the 2nd quarter. The company’s commercial revenue and customer count rose by 90% and 32% year-over-year, respectively. Its adjusted earnings per share also grew significantly to reach $0.04.
The company’s recently released earnings report delivered strong metrics and surprise beats across the board. Since its direct listing in October 2020, the company has been controversial. Palantir added a new business to its core Foundry platform, launching Foundry for Builders on July 20th. The company’s July 26th press release revealed that it is continuing its working relationship with the U.S. Department of Health and Human Services to support vaccine distribution. These announcements proved that the company is focusing on winning support from government institutions and rolling out new features for enterprises. However, this did not translate into a strong performance for the shares because of investors selling out of growth dependant tech stocks.
Should You Buy PLTR Shares?
The data analytics industry is expected to be one of the crucial keys to public and private sector success in the coming decades. In this respect, Palantir has positioned itself as an early leader in this industry. The company has developed a cult following which is comparable to the likes of Tesla. Its CEO Alex Karp shares some similar character traits like Tesla’s Elon Musk. This is just one of the smaller reasons investors should be interested in this company. Like Tesla, Palantir shares also trade at unique valuations and experience more volatility, which is a trend that is expected to continue. However, the share price can increase over time if more and more retail investors continue to hold on to their shares for the long term.
Another factor investors may consider with PLTR is the company’s hybrid crossover into the cybersecurity sector. With increased threats of hacks and high profile security breaches, Palantir’s offering of highly secure data puts it in front of most of its competitors. The main difference between Palantir and other companies working in this sector is its origins. Palantir started primarily serving government clients with a major focus on providing the highest levels of data security. On the other hand, most commercial focused vendors do not have that advantage nor the experience. Overall, commercial clients are a key factor in the company’s long-term growth. Considering all of the above, it is indeed the right time to add PLTR to your portfolio.
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