There’s plenty for bulls and bears to hash out over Palantir Technologies (PLTR). Bulls point to improved profitability for PLTR stock. Bears focus on decelerating revenue growth for Palantir stock. Then there’s buzz over artificial intelligence stocks to consider.
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PLTR stock hit a new 52-week high of 20.49 on Nov. 17 as some AI stocks continued to rally. Also, Palantir stock has advanced 219% in 2023 amid volatility in the Nasdaq composite. The Nasdaq was up 36% in 2023 as of Nov. 17.
Aside from artificial intelligence, PLTR stock could get a boost if the company wins a new contract from the United Kingdom’s National Health System. The NHS used Palantir during the coronavirus emergency. But a bigger contract worth roughly $595 million is now up for grabs. Palantir is viewed by analysts as the front-runner.
Artificial Intelligence A Growth Driver?
PLTR stock bulls point to artificial intelligence software as a growth driver. Palantir has already mined the AI opportunity with government customers for intelligence gathering, counterterrorism and military purposes.
Will generative AI spur growth in the commercial market for PLTR stock? The software maker has expanded into health care, energy and manufacturing.
Palantir announced its newest offering, the “Artificial Intelligence Platform,” early this year. As of mid-September, Palantir says the AIP now has 150 users, up 50% within the last month.
Palantir has not disclosed pricing for AI products. Analysts say Palantir needs to show progress developing new revenue streams from generative AI.
PLTR Stock: Fundamentals
The company has announced a $1 billion buyback for PLTR stock. But no shares were repurchased in the September quarter.
In addition, PLTR stock trade well below the software maker’s all-time intraday high of 45 set in late January 2021.
Meanwhile, Palantir’s governance structure gives Karp and co-founder Peter Thiel long-term control of the company through super-voting rights.
The company name is derived from the palantiri, which are crystal ball-like “seeing stones” from the “Lord of the…
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