Palantir Stock Breakout Ready to SHOCK The Market!

Summary

The video discusses the impressive performance of Palantir Technologies (PLTR) stock, which has risen over 4%, setting a new 52-week high. With earnings season approaching, there's speculation about a potential breakout into the 30s. The video also covers the Federal Reserve's testimony on interest rates and inflation, and how it impacts the market and AI stocks like NVIDIA. The presenter highlights PLTR's strong business metrics, its inclusion in July's list of new buys by top mutual funds, and the ongoing momentum in the AI sector, suggesting that despite high valuations, institutional investors are jumping on board, expecting continued growth.

Takeaways

• 📈 Palantir Technologies (PLTR) stock is performing well, up another 4% and setting a new 52-week high.
• 🔍 Earnings are about a month away, and there's speculation about a potential breakout into the near 30s for PLTR's stock price.
• 🏛 The Federal Reserve's (FED) testimony to Congress regarding interest rates and inflation has market implications, with AI stocks seeing increased buying pressure.
• 📊 PLTR's volume is decreasing, suggesting it's not entering short-term overbought territory, which is a positive sign for investors.
• 📉 Short volume for PLTR has decreased, and the short interest is around 4.52 million, indicating bullish sentiment.
• 📊 PLTR's stock price is influenced by a 'cup and handle' pattern, which is gaining attention for a potential breakout into the 30s.
• 💼 Institutional investors are showing interest in PLTR, possibly due to its government and commercial contracts becoming public.
• 📊 PLTR made it onto July's list of new buys by the best mutual funds, indicating growing serious interest in the company.
• 💡 Earnings estimates for PLTR are around 8 cents per share with a revenue of 652 million, hinting at strong business metrics and balance sheet health.
• 📊 The broader market, including the S&P 500 and NASDAQ, is setting record highs, influenced by strong performances from tech and AI stocks.
• 💡 The market anticipates the FED's interest rate cuts in September, influenced by CPI data and the FED's commentary on inflation.

Q & A

What is the current performance of Palantir Technologies' stock?

Palantir Technologies' stock is performing well, holding at the 28s and up another 4% on the day, setting a new 52-week high.

What is the significance of Palantir's stock volume decreasing?

The decreasing volume indicates that Palantir is not entering a short-term overbought territory, which is a positive sign for the stock's stability.

What does the decrease in short volume suggest about institutional investors' sentiment towards Palantir?

The decrease in short volume suggests that institutional investors are not making large swings in short positions regarding Palantir, which can be interpreted as a bullish sentiment.

What is the current short interest in Palantir Technologies?

The current short interest in Palantir Technologies is around 4.52 million, which is considered very bullish for the stock.

How is the broader market reacting to the performance of AI stocks?

The broader market is reacting positively to the performance of AI stocks, with big gains from companies like Microsoft and Nvidia, which are leading to an increase in the S&P 500.

What is the potential earnings per share estimate for Palantir Technologies?

The Wall Street estimate for Palantir Technologies' earnings per share is about 8 cents, with a correlated revenue of 652 million.

Why is Palantir Technologies being considered for inclusion in July's list of new buys by the best mutual funds?

Palantir Technologies is being considered due to its strong performance and the serious attention it is gaining from investors, along with its contract releases from both government and commercial sides.

What is the current year-to-date performance of Palantir Technologies' stock?

Palantir Technologies' stock is up by 60% year-to-date in 2024, which is more than halfway to doubling its value.

What is the general market sentiment regarding Palantir Technologies' high valuation?

The general market sentiment is that Palantir Technologies will continue to grow into its high valuation, with institutional investors jumping on board and the expansion of its AI products and government contracts.

How is the Federal Reserve's testimony affecting the market's expectation of interest rate cuts?

The Federal Reserve's testimony is reinforcing the market's expectation of interest rate cuts in September, as there are no signals of imminent cuts but a recognition of the risks of being too late.

What is the potential impact of the CPI data on the Federal Reserve's decision-making regarding interest rates?

The CPI data, which measures consumer price inflation, will be a significant gauge for the Federal Reserve. If inflation continues to cool, it may increase the probability of the first interest rate cuts in September.