Palantir Technologies advanced early Monday, briefly retaking a key technical support level. But Palantir stock subsequently retreated in late trades.
Palantir stock gained rose 2.6% to 18.24 during morning market action Monday, overtaking its 50-day moving average. But shares of the data analytics software company faded later in the session, trading flat to close at 17.77.
Shares of Palantir stock reversed lower following a mid-November breakout. Last week, PLTR sank 12.3% to 17.77. The move undercut the November breakout buy point by more than 8%, triggering the automatic stop-loss rule and sending the stock below its 50-day moving average.
An AI Stock To Watch
On Dec. 1, William Blair analyst Louie DiPalma, who rates PLTR stock underperform, speculated on the future of a four-year, $458 million Army contract which is set to expire. Citing a U.S. Army presentation, DiPalma wrote that there is "strong indication that Palantir's renewal contract in two weeks will be significantly less than the original $458 million."
Palantir garners nearly 60% of its revenue from government agencies. Those agencies use Palantir data analytics software for intelligence gathering, counterterrorism and military purposes. Meanwhile PLTR stock hit a 52-week intraday high on Nov. 21. However, Palantir stock reversed after the size of a highly anticipated United Kingdom contract disappointed.
Bulls and bears on PLTR stock have clashed over Palantir's progress in monetizing new "generative" AI products. Palantir is among AI stocks to watch. Also, Palantir stock has advanced 176% in 2023 amid volatility in the Nasdaq composite.
PLTR stock has a 97 Composite Rating out of 99. Palantir stock also has a 97 Relative Strength Rating and an 84 EPS Rating.
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