Palantir Technologies (PLTR) moved forward early Monday, resuming a key level of technical support.
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Palantir shares rose 2.6% to 18.24 during morning market action Monday, surpassing its 50-day moving average. In this case, breaking above the 50-day line – if the move holds after the starting bell – would not be a buy signal.
Palantir shares reversed lower after a breakout in mid-November. Last week, PLTR fell 12.3% to 17.77. The move undercut the November buy point by more than 8%, triggering the automatic stop-loss rule and send 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’s underperformance, speculated on the future of a four-year, $458 million military contract set to expire. Citing a U.S. Army presentation, DiPalma wrote that there are “strong indications that Palantir’s contract renewal in two weeks will be significantly less than the initial $458 million.”
Palantir gets nearly 60% of its revenue from government agencies. These agencies use Palantir data analysis software for intelligence gathering, counterterrorism, and military purposes. Meanwhile, PLTR stock hit a 52-week intraday high on November 21. However, Palantir stock reversed course after the size of a highly anticipated UK deal disappointed.
Bulls and Bears on PLTR Stock clashed over Palantir’s progress in monetizing new “generative” AI products. Palantir is part AI Stocks to Watch. Additionally, Palantir stock is up 176% in 2023 amid volatility in the Nasdaq Composite Index.
PLTR stock has a 97 Composite score out of 99. Palantir stock also has a 97 Relative Strength Rating and an 84 EPS rating.
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