Palantir Stock Finds Its Footing-and a Path to Global Growth

Palantir Technologies Inc. (NASDAQ: PLTR) is down about 14% in the last month. The move proves that even some of the strongest technology stocks can get weighed down by market sentiment and profit-taking.

That may seem overly simplistic to investors who want to find any reason to have an “I told you so” moment for Palantir, which still trades at a forward price-to-earnings (P/E) ratio of around 561x as of Dec. 2.

But there’s been no news to suggest that any of the gloomy predictions for PLTR stock will materialize. In fact, the company has recently announced two deals that add to the bullish outlook.

Palantir Expands Its Global Footprint With Major Wins

If there’s one area where Palantir bears make a compelling argument, it’s Palantir’s level of international revenue. The vast majority of Palantir’s revenue comes from the United States.

However, two recent announcements show why that could be changing. On Nov. 20, Palantir announced that it had achieved the IRAP PROTECTED level under the Australian Information Security Registered Assessors Program (IRAP).

This is a critical stop that will allow Palantir to partner with Australian government agencies and commercial organizations while meeting stringent national security and privacy standards.

On Nov. 19, Palantir announced that it had expanded its strategic alliance with PricewaterhouseCoopers UK (PwC UK). The alliance is underpinned by a multi-year, multi-million-pound investment by PwC.

The two companies will work together as preferred UK partners to align strategy and resources “to deliver advanced AI and data solutions for some of the world’s most complex challenges.” The alliance was initiated in 2023 and has delivered proven value for customers in sectors including financial services, healthcare, energy, manufacturing, and government.

The two organizations have also worked jointly on the NHS Federated Data Platform. This is transforming the way data is used to improve patient care and system efficiency.

Why 1 Analyst Thinks Palantir Could Hit a $1 Trillion Valuation

The raging debate about PLTR stock between the bulls and the bears is not going away. However, one of the company’s most strident bulls, Dan Ives, recently gave an interview on CNBC during which he boldly predicted that Palantir could have a $1 trillion market cap in the next two to three years.

Ives bases his forecast on Palantir’s position in handling the application side of AI. In fact, Ives noted that in 20% to 30% of deals involving AI use cases, Palantir will be the first call many companies make. According to Ives, Palantir is simply “playing a different game.”

That’s the point that Palantir shareholders have been making for years. However, it’s one thing to say words like “ontology,” it’s another thing to see the impact of the company’s ontology in action. That’s occurring now as companies in both the public and private sectors are generating actionable insights from Palantir’s AIP platform.

The takeaway is that, while PLTR stock is expensive today, there are reasons to believe that the company’s growth will meet its lofty expectations.

PLTR Stock Finds Technical Support Amid Low Volume

On Nov. 21, PLTR stock closed at $154.70. That put the stock down to where it was around Labor Day. Since then, however, the stock has rallied by about 10%. That puts it within striking distance of its 50-day simple moving average around $179. It’s also trading slightly below its consensus price target of $172.28.

A bullish crossover of that level could set the stage for a year-end rally. However, for that to happen, the volume will need to return. Currently, the stock is trading at approximately 25% of its average daily volume. This means that the movement is happening without much conviction. That conviction could come from an announcement that the Federal Reserve is cutting interest rates.

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The article "Palantir Stock Finds Its Footing—and a Path to Global Growth" first appeared on MarketBeat.