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Determining the appropriate trade size based on individual risk tolerance and account size is essential for managing risk. By carefully calculating the amount of capital allocated to each trade, traders can avoid overexposure to any single position. This approach is particularly important when trading leveraged instruments like CFDs, where potential losses may exceed initial capital inputs if not adequately managed. Traders should continuously monitor their positions, employing stop-loss and take-profit orders to manage risk. These tools can help limit potential losses and secure profits, essential in recommended strategies for automated trading fx to gain regular profits the leveraged environment of PLTR CFD trading, where both gains and losses can be magnified.
On the one hand, investors are enthusiastic about the company’s serial deal-making, but on the other hand, they are concerned about its rich valuation. Therefore, the key question is whether PLTR stock is overpriced at current levels or if it represents a valuable growth opportunity. While management hasn’t given any indications about what to expect from 2025, Wall Street analysts project revenue growth to slow to 25%. That’s a problem, as Palantir’s stock price indicates that it needs far more growth to support it. Balancing the pros and cons of investing in Palantir, I believe the stock’s current valuation makes it difficult to buy with conviction. There are likely enough strong points for shareholders to hold but investors who missed the recent rally may find more compelling opportunities elsewhere in the stock market.
Palantir Technologies Stock: Buy, Sell, or Hold?
Investors confident in the company’s outlook and market potential have compelling reasons to buy the stock. The company’s breakthrough came with the 2023 launch of its Artificial Intelligence Platform (AIP), which applies large language models, machine learning, and generative AI to enhance analytical capabilities. AIP’s ability to automate tasks and create custom workflows with predictive, actionable insights is highly popular across numerous industries. Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.
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- Palantir has been investing in creating a product that’s easier to sell and deploy.
- Data analytics has seen steady global market growth due to consistent business spending on big data and business analytics solutions.
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- Zacks Rank stock-rating system returns are computed monthly based on the beginning of the month and end of the month Zacks Rank stock prices plus any dividends received during that particular month.
- Whether a stock’s current price rightly reflects the intrinsic value of the underlying business and the company’s growth prospects is an essential determinant of its future price performance.
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- Breakout trading focuses on identifying significant price levels where PLTR stock moves out of a defined range, signalling a potential new trend.
- In the Software-as-a-Service (SaaS) industry, there’s an important metric called the “rule of 40,” which is used to gauge the health of a SaaS business.
- AIP’s ability to automate tasks and create custom workflows with predictive, actionable insights is highly popular across numerous industries.
- The silver lining is that patience could reward investors, as the possibility of a market correction might offer an opportunity to acquire shares at a lower and more attractive price.
- The company is guiding for full-year 2024 revenue of around $2.8 billion, representing a 26% increase from 2023, which will be confirmed in the upcoming fourth-quarter earnings report set to be released on Feb. 3.
- Given Palantir’s impressive deal-making momentum, I’m optimistic about the company’s future prospects.
Methods for Trading Palantir Stock
The Street high price target of $90 comes from Wedbush analyst Dan Ives — a notable tech bull, who reiterated an ‘Outperform’ rating on January 22. While that might not sound particularly bearish, the average price target for PLTR shares sits at just $49.27 — a figure that equates to a 39.39% downside from current prices. Building on this strong financial foundation, I’m increasingly optimistic about Palantir’s future, especially as I see how adeptly they’re winning deals. As I highlighted earlier, the half-billion-dollar contract with the US DOD is just the tip of the iceberg. The company’s track record now showcases their prowess as a serial deal maker, consistently signing deal after deal after deal. The company recently became profitable, and Q marked its seventh consecutive quarter of net income profitability.
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Zacks’ 7 BestStrong Buy Stocks for January, 2025
Army a complete currency trader video review is able to create AI-enabled data solutions to analyze information from multiple data sources, enabling operational efficiencies and optimizing business processes. Despite the strong performance seen in 2024, Wall Street equity researchers have remained quite bearish on Palantir stock — and project a significant downside for it in 2025. The Motley Fool has positions in and recommends Adobe, Intuit, Nvidia, Palantir Technologies, Salesforce, and ServiceNow.
Profitability and Income Statement
Following this success, the company signed deals with the FBI, NSA, NYPD, and other notable customers. Expanding further, in 2016, Palantir launched Foundry for commercial use cases like managing inventories or optimizing supply chains. Unless Palantir’s management gives an unbelievable projection of 40% to 50% revenue growth for 2025, its stock is likely highly overvalued.
The company is a creation of Silicon Valley, but has tried to distance itself from the region by moving its headquarters to Colorado and slamming tech’s “engineering elite” in its prospectus. Shares of Palantir, founded in 2003, have been widely traded on the private market for years, though the company has struggled to maintain the $20.4 billion valuation from a 2015 financing round. The stock at that time was valued at $11.38 and traded this year for between $4.17 and $11.50. Once your analysis is complete, you can choose to place a trade by deciding to ‘go long’ (buy) or ‘go short’ (sell).
Palantir Stock Is Down This Year After an Incredible 2024. Why Jefferies Remains Bearish.
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Palantir Technologies wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years. The latest growth wave Palantir experienced is primarily due to its Artificial Intelligence Platform (AIP) product. AIP gives its users tools to integrate AI models directly into a business’s inner workings and set up AI agents to perform tasks that humans would normally have to do. It’s possible that Palantir stock can continue to gain from here, but the stock is clearly priced for perfection at this point, especially with the surge following President-elect Donald Trump’s victory.