Palantir Technologies Inc (NASDAQ:PLTR) shares are trading lower Wednesday as the stock continues to pull back following a strong run in recent weeks. Here’s what you need to know.
What To Know: Palantir shares surged to new all-time highs earlier this month after the company beat analyst estimates on the top and bottom lines for the eighth straight quarter, reporting second-quarter revenue of $1.004 billion versus estimates of $939.71 million, and adjusted earnings per share of 16 cents versus estimates of 14 cents.
Revenue was up 48% year-over-year as U.S. Commercial revenue jumped 93% year-over-year and U.S. Government revenue increased 53% year-over-year.
Palantir guided for third-quarter revenue of $1.083 billion to $1.087 billion versus estimates of $981.1 million. The company also raised its full-year guidance to a range of $4.14 billion to $4.15 billion versus estimates of $3.9 billion.
After riding a wave of momentum to approximately $190, shares have faced selling pressure in recent trading sessions. Citron’s Andrew Left announced a short position against Palantir last week, suggesting that the stock had become “beyond overvalued.”
In a research report published earlier this week, Citron argued that Palantir should be trading at $40 when comparing the company to OpenAI.
“It should be noted that even at a 17x sales multiple, OpenAI has the highest multiple of any scaled SaaS stock in the world, and that number in itself is extreme. This means that at $40, PLTR would still be expensive,” Left wrote in the report.
The recent volatility in Palantir shares has captured the attention of retail traders and investors. The recent price movement indicates selling pressure as the stock approaches critical support levels.
Palantir’s short interest has increased by $2.8 billion this year. Short interest currently sits at 2.54%, according to data from Benzinga Pro. The stock finds support at $150.00, a level that has previously held firm, while resistance is identified at $157.75, where selling pressure has emerged. A breach below $150.00 could pave the way for further declines, whereas a move above $157.75 might signal a bullish reversal.
The Relative Strength Index (RSI) stands at 38.50, suggesting the stock is nearing oversold conditions, which could prompt a rebound if buying interest resurfaces. Meanwhile, the Moving Average Convergence Divergence (MACD) reveals a bearish crossover, with the signal line at 1.25 and the MACD line at 0.85, reinforcing the current downtrend.
Market structure analysis shows a pattern of lower highs and lower lows, confirming a short-term bearish trend. Analyst ratings reflect a neutral sentiment. Recent analyst changes include an upgrade from Sell to Hold from Deutsche Bank, an Overweight rating and price target of $182 from Piper Sandler and Neutral ratings and price targets ranging from $155 to $165 from Cantor Fitzgerald and UBS. Wedbush has a Street-high price target of $200 on Palantir shares.
Benzinga Edge rankings show mixed measures for Palantir, with a low Value ranking of 2.69/100, but a high Growth ranking of 95.06/100 and a strong Momentum ranking of 98.62/100.
PLTR Price Action: Palantir shares were down 9.6% at $142.55 at the time of publication on Wednesday, according to Benzinga Pro. The stock is now down about 15% over the past week.
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