There’s plenty for bulls and bears to hash out over Palantir Technologies (PLTR). Bulls point to improved profitability for PLTR stock. Bears focus on revenue growth for Palantir stock. Then, there’s buzz over artificial intelligence stocks to consider for the maker of data analytics software.
As of the market close on Jan. 24, PLTR stock had gained 4% in 2025. Shares have gained for eight straight trading sessions after Palantir stock fell below its 50-day moving average on Jan. 10. PLTR stock hit an all time intraday high of 84.80 on Dec. 24. Shares trade about 7% below that record high.
Meanwhile, fourth quarter earnings for Palantir stock are due after the market close on Feb. 3.
Also, Palantir stock is back on the IBD 50 roster of growth stocks. And, Palantir is among AI stocks to watch.
Further, Palantir stock advanced 340% in 2024, with much of the gain coming after Donald Trump’s Presidential election win as well as a third-quarter earnings beat. Trump took office on Jan. 20.
PLTR Stock: Trump Administration 2.0
Several members of the incoming Trump administration have ties to Palantir, a company co-founded by longtime venture capitalist Peter Thiel. They include David Sacks, tapped as White House artificial intelligence and crypto czar. Tech industry maverick Elon Musk, Sacks and Thiel helped launch PayPal, becoming part of the so-called PayPal Mafia. Musk is a key Trump advisor.
Palantir has provided data analytics tools to government customers for intelligence gathering, counterterrorism and military purposes. Now Palantir aims to use generative AI to spur growth in the U.S. commercial market.
One reason for Palantir’s post-election rally could be views that artificial intelligence will play a bigger role in homeland security or defense spending.
Palantir Stock: Defense Business News
According to a report, Palantir and startup Anduril Industries are talking with many other tech companies, including OpenAI and Elon Musk’s SpaceX, to form a consortium to jointly bid on U.S. government contracts.
Palantir is in talks to invest in drone and software maker Shield AI in its next funding round, according to the Information.
In December, the federal government gave Palantir a higher rating for secure cloud computing services. And, Palantir announced a partnership with Booz Allen Hamilton (BAH), a competitor in some government and defense services.
Also on Nov. 7, Palantir and startup Anthropic announced a partnership with Amazon Web Services to provide U.S. intelligence and defense agencies access to the Claude 3 AI models.
In October, Palantir formed an alliance with defense firm L3Harris (LHX).
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PLTR Stock: High Valuation An Issue?
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The company continues to make progress with its “Artificial Intelligence Platform,” initially rolled out in early 2023. Palantir hosted its fifth AIP event in September.
At AIPCon 5, clients such as the National Geospatial-Intelligence Agency, Aramark, and Mount Sinai demonstrated Palantir AI technologies in better supply chain management, operational efficiencies and health patient care.
However, Palantir has not disclosed pricing for AI products. Some analysts say Palantir needs to show more revenue progress with generative AI commercial deployments.
Still, Wall Street analysts now do not expect most software makers to monetize generative AI, or “conversational AI,” in a material way until late 2025 or 2026.
Palantir Stock Fundamentals
On the news front, there’s plenty for investors to mull. Oracle (ORCL) and Palantir announced a cloud computing alliance.
The Denver-based company offers three platforms. One is Palantir Gotham, used primarily by government agencies. There’s Palantir Metropolis for banks, financial services firms and hedge funds. And Palantir Foundry is used by corporate clients.
Palantir gets nearly 60% of its revenue from government agencies. Decelerating revenue growth is an issue. In 2022, revenue growth slowed to 24% from 40% in 2021 and 47% in 2020. In 2023, revenue grew 17% year-over-year to $2.23 billion.
Palantir Stock Technical Analysis
Meanwhile, Palantir’s Relative Strength Rating stands at 99 out of a best-possible 99.
Also, Palantir stock holds a Composite Rating of 99 out of a best-possible 99, according to IBD Stock Check-up. IBD’s Composite Rating combines five separate proprietary ratings into one easy-to-use rating. The best growth stocks have a Composite Rating of 90 or better.
PLTR stock holds an Accumulation/Distribution Rating of A-minus. That rating analyzes price and volume changes in a stock over the past 13 weeks of trading. A+ signifies heavy institutional buying; E means heavy selling. Think of a C grade as neutral.
Also, Palantir stock is extended and needs to form a base to be actionable, according to MarketSurge.
Some investors may want to take profits.
Investors can sign up for news alerts from Palantir investor relations department here.
Further, check out IBD Stock Lists and other IBD content to find dozens more of the best stocks to buy or watch.
Follow Reinhardt Krause on Twitter @reinhardtk_tech for updates on artificial intelligence, cybersecurity and cloud computing.
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