Palantir Technologies Inc (NASDAQ:PLTR) shares are trading marginally higher on Tuesday, hovering around $182, as the company rides a wave of strategic expansions that has fueled a 7% rally over the past five sessions. Here’s what investors need to know.
- Palantir stock is showing positive momentum. What should traders watch with PLTR?
What To Know: The primary catalyst for the renewed momentum is the launch of “Chain Reaction,” a new operating system designed to address the critical energy bottlenecks constraining AI innovation.
In partnership with Nvidia and CenterPoint Energy, Palantir aims to optimize the U.S. power grid and accelerate data center infrastructure, positioning itself as a key player in the physical logistics of the AI boom.
This infrastructure push complements a series of robust financial indicators. Palantir is coming off a blowout third-quarter earnings report last month where revenue beat estimates at $1.18 billion, driven by a 54% surge in U.S. commercial revenue.
The company boasted a “Rule of 40” score of 114%, a metric that underscores its rare combination of high growth and profitability. Bank of America analysts have subsequently highlighted the company’s customer stickiness, noting a 40% year-over-year spending increase from its top three clients.
Read Also: Palantir Picks Northslope As First Elite AI Partner In Big Expansion Push
Palantir also appears to be bouncing back following concerns raised by prominent short sellers. Adding to the news cycle, famed “Big Short” investor Michael Burry recently revisited his viral 2023 “Sell” call as he has been making headlines recently for bets against Palantir and Nvidia.
While shares remain down approximately 6% over the last month following a mid-November dip, the recent string of partnerships, including a niche AI deal with Teton Ridge for rodeo analytics, suggests Palantir is successfully diversifying its commercial reach beyond government contracts.
Benzinga Edge Rankings: Benzinga Edge rankings underscore the stock’s current strength with a massive 95.95 Growth score and 94.12 Momentum score, signaling robust technical health despite a lower Value rating of 1.03.
PLTR Price Action: Palantir Technologies shares were up 0.12% at $181.72 at the time of publication on Tuesday, according to Benzinga Pro data.
The stock is also significantly above its 200-day moving average of $142.47, trading approximately 27.9% higher. This long-term bullish trend suggests that investor confidence remains strong, particularly as the stock has shown resilience in maintaining its upward trajectory since breaking above this key moving average.
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