Should You Buy PLTR Stock? Analyzing Palantir Stock with Technical and Fundamental Analysis

Palantir Technologies (PLTR) has been a hot topic for investors, with both bulls and bears having strong opinions on the company’s future. Bulls are excited about the improved profitability of PLTR stock, while bears are concerned about decelerating revenue growth. The buzz around artificial intelligence stocks adds another layer of intrigue to the discussion.

As of May 28, PLTR stock had seen a 22% increase in 2024, but some technical ratings have weakened, with the stock trading below its 50-day moving average. Despite this, shares have dropped from a high of 27.50 set on March 7, and Palantir stock is no longer on the IBD 50 roster of growth companies.

The enterprise software sector has faced challenges in 2024, with investors not expecting significant monetization of generative AI until late 2024 or 2025. The iShares Expanded Tech-Software Sector ETF (IGV) has gained 5% in 2024, including companies like Salesforce (CRM).

Palantir’s Q1 earnings report saw a decline in stock value as analysts focused on U.S. commercial market growth and weakness in the international business. Despite this, Palantir announced a cloud computing alliance with Oracle (ORCL) and won a $178 million U.S. Army contract for project TITAN, showcasing its AI capabilities.

With a focus on artificial intelligence software as a growth driver, Palantir aims to expand into new markets and industries. The company’s governance structure, long-term control by key figures, and unique approach to software customization all play a role in shaping its future trajectory.

Overall, Palantir’s performance in 2024 will be closely watched by investors, with the company’s AI initiatives and partnerships driving the conversation around its potential for growth and profitability.