@ProsperTradingAcademy's Scott Bauer says Palantir (PLTR) is in "no man's land" as its sell-off continues. However, he notes the stock can become a "valuation play" once it builds up support levels.
Shares of Palantir Technologies (PLTR -8.21%) are trading lower on Monday. The company's stock lost 8.4% as of 11:50 a.m.
In this video, I will cover the recent updates about Palantir (PLTR -9.02%) and explain why the stock is under pressure. Watch the short video to learn more, consider subscribing, and click the special offer link below.
Palantir Technologies (NASDAQ:PLTR) has been one of the most richly-valued stocks in the stock market.
Palantir's (NASDAQ: PLTR) stock losses are accelerating, with the equity sliding below the critical $100 support level, a key anchor to its record high of nearly $125.
The stock is on pace for its fourth straight losing session.
Shares are down 19% over the past three trading days, putting a dent in the AI defense company's impressive run.
Palantir Technologies (PLTR -4.63%) shares have been red hot for the past couple of years, but the stock was tumbling after Defense Secretary Pete Hegseth ordered the Pentagon to slash its $850 billion budget by 8%, or about $50 billion.
Palantir Technologies (PLTR -4.63%) has been one of the undisputed winners since the advent of artificial intelligence (AI). The data mining and artificial intelligence (AI) specialist has gained 333% over the past year (as of this writing) and continues to defy detractors.
Applications involving artificial intelligence (AI) seem to be evolving by the day. While it's obvious that different facets of the technology world can be enhanced through AI, it's become apparent that enterprise software is a particularly enormous opportunity.
Palantir (PLTR -4.63%) and BigBear.ai (BBAI -9.59%) are both enterprise AI software companies which crunch massive amounts of data for large organizations. Palantir, which went public via a direct listing in September 2020, is a much larger company which analyzes data for the top U.S. government agencies and big enterprise customers.
Palantir's stock experienced significant volatility, dropping from $125 to $106 due to defense budget cuts and a new trading plan by CEO Alex Karp. Despite strong revenue growth and impressive U.S. commercial sales, Palantir's valuation is seen as irrationally high, prompting a downgrade to "Strong Sell". Palantir's current valuation is unsustainable, trading at over 83x TTM revenue, far exceeding industry peers and even major tech companies.