Marketdash
Back to News

Palantir Stock Surges as Tech Rally Returns: Has the Selloff Run Its Course?

MarketDash Editorial Team
14 days ago
Palantir is bouncing back Monday as big tech catches a bid, helped by falling bond yields and fresh hopes the Fed will cut rates in December.

Palantir Technologies Inc. (PLTR) is trading sharply higher Monday morning, riding a wave of enthusiasm sweeping through large-cap tech. Falling bond yields and growing chatter about a December Fed rate cut are bringing buyers back to growth stocks and AI names after a bumpy November. The Nasdaq-100 is up nearly 2% in early trading, and Palantir is along for the ride.

What's Driving the Rebound?

Palantir is shaking off a November pullback that had investors nervous. The selloff gained steam after "Big Short" investor Michael Burry disclosed put positions betting against the stock, while CEO Alex Karp and other insiders filed to offload more than $250 million worth of shares. That combination stoked fears about an AI bubble and sent the stock tumbling.

But the company's fundamentals are holding up just fine. Earlier this month, Palantir posted strong third-quarter results, reporting adjusted earnings of 21 cents per share on revenue of $1.18 billion. Both figures beat Wall Street estimates, and management issued upbeat guidance for Q4 and fiscal 2025. Analysts responded by lifting price targets, with several major firms setting new objectives well above current levels while maintaining Buy or Neutral ratings.

Why Rate Cuts Matter for Palantir

Here's the thing about high-growth tech stocks like Palantir: they're valued largely on future earnings, not today's profits. That makes them especially sensitive to interest rates. A December rate cut would lower discount rates, making those future cash flows more valuable in present terms and supporting higher valuations.

There's also a practical angle. Cheaper financing and a stronger macro backdrop make it easier for Palantir's government and commercial customers to approve large, multi-year software and cloud contracts. That directly feeds the company's revenue pipeline, which is critical for an AI and data platform still in growth mode.

The Momentum Picture

According to market data rankings, Palantir boasts a momentum score of 93.77 and a growth score of 95.91, reflecting strong underlying performance. The long-term trend remains the only price signal currently flashing bullish, suggesting the stock still has technical support despite recent volatility.

Price Action

Palantir Technologies shares were up 4.05% at $161.12 at the time of publication Monday.

Back to News

Palantir Stock Surges as Tech Rally Returns: Has the Selloff Run Its Course?

MarketDash Editorial Team
14 days ago
Palantir is bouncing back Monday as big tech catches a bid, helped by falling bond yields and fresh hopes the Fed will cut rates in December.

Palantir Technologies Inc. (PLTR) is trading sharply higher Monday morning, riding a wave of enthusiasm sweeping through large-cap tech. Falling bond yields and growing chatter about a December Fed rate cut are bringing buyers back to growth stocks and AI names after a bumpy November. The Nasdaq-100 is up nearly 2% in early trading, and Palantir is along for the ride.

What's Driving the Rebound?

Palantir is shaking off a November pullback that had investors nervous. The selloff gained steam after "Big Short" investor Michael Burry disclosed put positions betting against the stock, while CEO Alex Karp and other insiders filed to offload more than $250 million worth of shares. That combination stoked fears about an AI bubble and sent the stock tumbling.

But the company's fundamentals are holding up just fine. Earlier this month, Palantir posted strong third-quarter results, reporting adjusted earnings of 21 cents per share on revenue of $1.18 billion. Both figures beat Wall Street estimates, and management issued upbeat guidance for Q4 and fiscal 2025. Analysts responded by lifting price targets, with several major firms setting new objectives well above current levels while maintaining Buy or Neutral ratings.

Why Rate Cuts Matter for Palantir

Here's the thing about high-growth tech stocks like Palantir: they're valued largely on future earnings, not today's profits. That makes them especially sensitive to interest rates. A December rate cut would lower discount rates, making those future cash flows more valuable in present terms and supporting higher valuations.

There's also a practical angle. Cheaper financing and a stronger macro backdrop make it easier for Palantir's government and commercial customers to approve large, multi-year software and cloud contracts. That directly feeds the company's revenue pipeline, which is critical for an AI and data platform still in growth mode.

The Momentum Picture

According to market data rankings, Palantir boasts a momentum score of 93.77 and a growth score of 95.91, reflecting strong underlying performance. The long-term trend remains the only price signal currently flashing bullish, suggesting the stock still has technical support despite recent volatility.

Price Action

Palantir Technologies shares were up 4.05% at $161.12 at the time of publication Monday.

    Palantir Stock Surges as Tech Rally Returns: Has the Selloff Run Its Course? - MarketDash News