Palantir Technologies Inc. NASDAQ: PLTR The shares are officially located in the bear market, which is defined as a fall of more than 20% for any time. The decline is disturbing for some retail investors who bought stocks during her conversation. However, since the shares fill out a break in a lack, it is fair to ask what drives this decrease and how much it can fall.
Institutional participation is the right-handed sword
Palantir Technologies Today
Palantir Technologies
As of 04:00 on the East
- 52-week range
- $ 20.33
▼
$ 125.41
- P/e ratio.
- 462.34
- Value is valuable
- $ 73.21
Two events significantly contributed to the growth of a steamer in the second half of 2024. Firstly, the company was included in the S&P 500, and in -secondly, it switched its list to NASDAQ exchanges. Both events forced the hands of institutional investors, who were aside from a high assessment of shares.
Nevertheless, retail investors discover that in the games everything is fun until much money enters the fight. With large amounts of money invested in the shares, it is logical that most of the current Sale of Promotions PLTR comes from institutions.
At first glance, they will say that this is from a high appraisal of a steamer. Over the past 12 months, the company impressively increased revenue from 12% to 36%, and its free cash flow from 6% to 55%. Nevertheless, even with this recent sale, the company has a market capitalization of about 196.65 billion dollars. The United States for a 12-month income of about 2.6 billion dollars. USA. Even for one of the leading technological actions, this is a difficult mathematics.
These are prices per ton of future growth. But let’s be clear. Institutions are also scored because they ignored and/or fired the steamer when they could buy in 40 or $ 20. So now in the funds there is something to catch up. But they want to do this at the best price.
Efficiency – the second name of the steamer
As I wrote last week, the Slide of the PLTR shares began partially from the fears that the US Department of Defense (DOD) is going to “redistribute” about 8% of its budget. Bears will quickly celebrate that the steamer brings more than 50% of its income from the federal government with a huge percentage of this from the Ministry of Defense.
But this does not mean that the budget will be reduced. As noted by the Minister of Defense, Pete Hegset, some programs can be reduced to transfer this capital to other projects. This is a standard working procedure with the new administration. And there are some feelings that the steamer will benefit from an emphasis on efficiency. This is that the company’s products are designed to help its customers.
That is why the chief executive director of Palantir Alex Karp, it seems, is not excited by an announcement, recently celebrating New York into the Economic Club, “the only best thing that helps my company is meritocracy, the pen checks everything … Perhaps there is a contract that does not do who does not “deserves to be updated, great. Maybe there is a contract that deserves the extension that is canceled. ”
This is very similar to the comments that Karp made on the call of the company’s profit in the fourth quarter in early February. At that time, Karp said about the influence of the Dog: “We love destruction, and everything that is useful for America will be useful for Americans – and very good for a steamer.”
This opinion was confirmed by Xyam Sankar, the chief technological director of the steamer, who said that the values of the steamer are closely connected with the mission to bring meritocracy and transparency to the government. He also said that this is the lack of responsibility in the government, and not the effectiveness, which is the real competition of the steamer.
Palantir Technologies Inc. (PLTR) Price card on Tuesday, February 25, 2025
PLTR shares are on a critical point
Palantir shares are traded next to a 50-day simple sliding medium (SMA). If it is a cut below this, it is not unthinkable that it can fall to about $ 73, which would be near the consensus price of analysts on Marketbeat. It will also be slightly higher than the current 100-day SMA.
Nevertheless, on February 20, Loop Capital initiated the coating of Palantir shares with a purchase rating and a target price of $ 141. PLTR shares are transferred to the range that looks resold.
For long-term investors of this sale, it is not enough to light a panic, and for some, aside the PLTR campaign is still reduced. Nevertheless, technical signals indicate a higher price of shares, and the company’s profit will not occur until May, the shares will probably be unstable along with a wider market.
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