Palantir stock price forecast: Prediction ahead of earnings

Palantir Technologies (NYSE: PLTR) stock price has lost momentum in the past few days as investors wait for the upcoming earnings. The shares dropped to $18.26 on Friday, a few points below the year-to-date high of $20.21. It has soared by over 207% from the lowest point this year.

Palantir earnings ahead

Palantir Technologies share price has been on fire this year as investors cheer its pivot to artificial intelligence. Many analysts believe that the company will benefit because of its credentials in the AI industry. In a recent note, an analyst at WedBush wrote that:

“As we begin the 4th Industrial Revolution, Palantir is engaging in the widespread trend of various industries leveraging recent generative AI innovations to streamline operations and improve expense profiles.”

PLTR stock price also jumped after the company published strong results in May. The results showed that the company’s revenue jumped by 17.6% YoY in the first quarter to over $525 million. This increase was about $19.24 million higher than what analysts were expecting.

Analysts believe that the company’s revenue came in at over $533 million in Q2 while EPS came in at 1 cents. Palantir has beaten analyst earnings in the past few quarters straight.

Still, there are some concerns about the company. For one, it is unclear how the company will benefit from AI. While companies like C3.ai, Microsoft, and Nvidia have launched AI products, they are yet to monetize them well. Analysts expect that the company’s annual revenue will be $3.2 billion in 2025 while the company sees its guidance coming in at $4 billion.

Further, there are concerns about the company’s valuation. It is trading at PE of 82.66x while its EV/EBITDA was 66.92x. Its EV to revenues stand at 17.23x. Therefore, the company’s valuation seems like it is stretched.

Palantir stock price forecast

Palantir chart by TradingView

The daily chart shows that the PLTR share price has been in a strong bullish trend in the past few years. It jumped to a high of $20.36 this month, the 61.8% Fibonacci Retracement level.

Palantir share price has moved above the 50-day and 100-day exponential moving averages (EMA). The MACD has moved above the neutral point. Therefore, the outlook for the stock is neutral with a bearish bias. 

In this case, there is a likelihood that the stock will have a bearish breakout as sellers target the key support at $14.90, the 38.2% retracement point. The alternative scenario is where the shares rise and moves above the year-to-date high of $20.36.