Palantir Technologies Inc. (PLTR) had a rough Wednesday, but before you panic, know that it's mostly company. The tech sector dropped 2.01%, the S&P 500 fell 0.99%, and pretty much everything with a circuit board took a beating. Sometimes stocks go down because the whole neighborhood is having a bad day.
Earnings Season: Where the Real Drama Lives
The more interesting story is what's around the corner. Palantir just scheduled its fourth-quarter earnings for after the close on Feb. 2, joining a parade of big tech companies reporting later this month. Investors are pricing in some serious growth expectations:
- EPS Estimate: $0.21 (Up from $0.14 YoY)
- Revenue Estimate: $1.34 billion (Up from $827.52 million YoY)
- Valuation: P/E of 415.6x (Indicates premium valuation)
Analyst Consensus & Recent Actions: The stock carries a Hold rating with an average price target of $194.53. Recent analyst moves tell an optimistic story:
- Citigroup: Upgraded to Buy (Raised Target to $235.00)
- Truist Securities: Initiated with Buy (Target $223.00)
- DA Davidson: Neutral (Raised Target to $215.00)
Valuation Insight: Yes, that 415x P/E multiple looks ridiculous. But with 50% expected earnings growth, analysts are essentially saying the premium might be justified. The consensus suggests 11% upside from current levels, which means the market is betting on Palantir to deliver.
The Technical Picture Gets Messy
Palantir is currently trading 4.2% below its 20-day simple moving average and 0.9% below its 100-day SMA, signaling some near-term weakness. The good news? It's still 13.6% above its 200-day SMA, maintaining that longer-term uptrend. Over the past year, shares have rocketed 165.61%, and the stock remains closer to its 52-week highs than lows.
The RSI sits at 48.25—neutral territory, meaning the stock isn't screaming overbought or oversold. Meanwhile, MACD is below its signal line, flashing bearish pressure. Translation: mixed momentum that could go either way.
- Key Resistance: $187.50
- Key Support: $148.00