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.

Outlines

00:00

📈 Stock Market and AI Sector Surge

The script opens with a lively introduction to a day of significant gains in the stock market, particularly in the AI and tech sectors. It highlights Palantir Technologies (PLTR), which is experiencing a surge, with its stock price climbing 4% to set a new 52-week high. The anticipation of earnings reports a month away is creating buzz, with speculation of a potential breakout into the 30s. The Federal Reserve's ongoing testimony to Congress about interest rates and inflation is also discussed, along with the market's reaction to these statements. The script notes a decrease in short volume for PLTR, suggesting bullish sentiment and a potential 'cup and handle' pattern formation on weekly charts, which is often a bullish signal. The broader market's performance is tied to major AI stocks and the influence of companies like Microsoft and Nvidia on the S&P 500. PLTR's inclusion in July's list of new buys by top mutual funds is also mentioned, indicating growing serious interest in the company.

05:02

💹 Overcoming Valuation Concerns and Momentum in AI Stocks

This paragraph delves into the business performance and balance sheet strengths of Palantir, emphasizing the successful launch of its AI product (AIP) and its strong growth trajectory. Despite high valuation concerns, which are acknowledged as a significant issue for PLTR, the market seems to be adjusting to this reality. The narrative suggests that the company's momentum, along with institutional investor interest, is driving the stock price higher. The broader market context is provided with the S&P 500 and NASDAQ indices showing robust performance, with AMD being a notable contributor in the semiconductor space. The Federal Reserve's messaging on interest rates and the potential for rate cuts in September is also discussed, with the market favoring continuity and stability in policy signals. The paragraph concludes with a focus on Nvidia's impressive performance and the ongoing 'AI arms race' in the tech industry, hinting at a competitive landscape for AI chip development.

10:02

🚀 Anticipating Future Growth and Earnings Hype

The final paragraph wraps up the discussion by focusing on the potential for PLTR to maintain its outperformance, driven by sales and earnings growth. It mentions the company's successful earnings reports and its competitive position in the AI market, suggesting that the sector's momentum is likely to continue, especially with upcoming earnings reports. The script invites viewers to share their thoughts on the discussed topics, creating an interactive element to the video. It ends on a high note, capturing the overall bullish sentiment and the excitement around the AI sector's future prospects.

Keywords

💡Paler Technologies

Paler Technologies is likely a fictional company name used in the script to represent a company that is experiencing a significant increase in its stock value. The term is central to the video's theme as it is discussed extensively in the context of its stock performance and market impact. For instance, the script mentions 'Paler Technologies' holding the 28s up another 4% on the day, indicating a strong performance.

💡52-week high

A 52-week high refers to the highest price at which a security has traded during the past year. In the script, it is mentioned that Paler Technologies has set a new 52-week high, which is a key indicator of the company's positive stock performance and is a significant point in the discussion about the stock's potential for further growth.

💡Earnings

Earnings in the context of the stock market refer to the profits that a company has made over a specific time period, which is often a quarter or a year. The script discusses the anticipation of Paler Technologies' earnings report about a month away, which is a critical event for investors as it can influence the stock's price and is a central topic in the video's discussion on potential stock performance.

💡Breakout

In stock trading, a breakout refers to a sudden increase in price after a period of consolidation. The script speculates on the possibility of Paler Technologies' stock experiencing a breakout into the near 30s, which is part of the analysis on the stock's future movements and potential investment opportunities.

💡FED

The Federal Reserve, often referred to as the FED, is the central banking system of the United States. The script discusses the FED's testimony to Congress, particularly remarks regarding interest rates and inflation, which are key factors influencing the broader market and the performance of stocks like Paler Technologies.

💡Inflation

Inflation is the rate at which the general level of prices for goods and services is rising, and subsequently, purchasing power is falling. The script mentions the market's reaction to the FED's views on inflation, which is a critical economic indicator that can affect interest rates and, by extension, stock market performance.

💡Institutional FOMO

FOMO stands for 'Fear of Missing Out', and when referring to institutional FOMO, it implies that institutional investors are starting to buy into a stock or market trend out of fear of missing out on potential gains. The script suggests that institutional FOMO might be taking place with Paler Technologies, indicating a shift in investor sentiment that could impact the stock's price.

💡Cup and Handle Pattern

The cup and handle pattern is a bullish continuation pattern in the stock market that signals a consolidation period followed by a breakout. The script mentions this pattern in relation to Paler Technologies' stock performance, suggesting that the pattern is indicative of a potential upward price movement.

💡S&P 500

The S&P 500 is a stock market index that measures the stock performance of 500 large companies listed on stock exchanges in the United States. The script notes the S&P 500's impact on the broader market, particularly how the performance of AI stocks like Paler Technologies and others is contributing to its rise.

💡NASDAQ

NASDAQ is an American stock exchange known for listing technology and biotechnology companies. The script mentions NASDAQ being up over a percent, indicating a positive trend in the technology sector, which is relevant to the performance of AI and tech stocks discussed in the video.

💡CPI

CPI stands for Consumer Price Index, which measures the average change over time in the prices paid by urban consumers for a market basket of consumer goods and services. The script anticipates the release of CPI data as a significant market variable that could influence the FED's decisions on interest rates, thereby affecting the stock market.

Highlights

Paler Technologies and AI stocks are performing well, contributing to the broader market's upswing.

Paler is up another 4%, setting a new 52-week high, with potential for a breakout into the 30s.

Earnings are about a month away, increasing the possibility of a price surge for Paler.

The Federal Reserve's testimony to Congress regarding interest rates and inflation has market implications.

Institutional FOMO may be driving buying pressure in big AI stocks, especially Paler.

Paler's trading volume is decreasing, suggesting it's not overbought in the short term.

Short volume for Paler has decreased, indicating bullish sentiment among institutional investors.

Paler's current short interest is around 4.52 million, correlating positively with a cup and handle pattern.

AI stocks are rallying, with Microsoft and Nvidia leading the market and impacting the S&P 500.

Paler made it onto July's list of new buys by the best mutual funds, indicating growing interest.

Paler's contract releases from government and commercial sectors have come to public light, fueling the rally.

Paler has crossed a buy point, setting up for a potential extension above its 21-day exponential moving average.

Earnings estimates for Paler are around 8 cents per share with a revenue of 652 million.

Paler's stock is up 60% this year and discussions are focusing on whether it could double by year-end.

Sponsorship mention of Mumu, a trading app offering free commission trading and investment tools.

The S&P 500 and NASDAQ are setting record highs, influenced by semiconductor chip companies like AMD.

Fed Chair Powell's testimony suggests no imminent interest rate cuts, which the market favors.

Upcoming CPI data is a significant market variable, potentially influencing the Fed's interest rate decisions.

NVIDIA's stock is soaring, with some analysts increasing their price targets to $150 pre-stock split.

The AI market is experiencing an arms race, with companies competing to produce the best AI chips.

Paler's software side is performing well, with continued momentum expected as earnings approach.

Transcripts

ladies and gentlemen welcome back to dat

to dispatch I hope you guys are having a

wonderful day we see paler Technologies

and AI stocks included all having a

great day helping to bring up the

broader Market we have a lot of details

to cover here especially as paler is now

holding the 28s up another 4% on the day

and setting a new 52- we year-to-date

High we're going to be talking about

what this means especially with earnings

about a month away and could we possibly

see a Breakout here into the near 30s

that's becoming more of a higher

probability right before our eyes we're

also going to be talking about of course

the FED continuing their testimony

against Congress what they made in terms

of remarks regarding interest rates and

what they're seeing in terms of

inflation how the market reacted and we

see big AI stocks that are starting to

have a lot of buying pressure coming in

the question is are we seeing

institutional fomo that is starting to

take place especially with P here we're

going to be getting into those details

here in just just a moment so if you are

a new or returning viewer hit that like

button subscribe for daily videos and of

course I'm not a financial adviser I'm

collecting all the data and dispatching

it to you pop it up on the screen P your

Technologies closing at

2842 doing very well here one thing that

I do like about this push that is

continuing and even starting to

establish some basically multiple

trading days of consolidation here in

the high 27s 28s is we see volume that's

actually starting to De decrease a

little bit why I like this is because

what this is showing is that paler is

not necessarily entering in this

shortterm kind of overbought territory

and one other particular thing is that

short volume actually decreased here

from the trading day prior and this

shows me that institutional investors

we're not seeing any big large swings in

short P um positions regarding pltr

sitting at around 4.52 million right now

and this is incredibly bullish for pltr

especially correlating with this cup and

handle pattern that we've been talking

about that we've been seeing on the

weekly charts across the board the whole

interwebs have been talking about this

talking about this breakout here into

the 30s this is getting set up more and

more on a daily basis and this is also

following here as AI stocks they really

do launch a breakout across the board as

really Microsoft and Nvidia are big fuel

gainers across the market leading to an

in big impact on bringing up the S&P 500

and you have palente here that is

starting to launch its breakout here

rising over 3% like I said on this

single day and also posting its seventh

straight up week now with P one thing

that it did earn itself on is onto

July's list of new buys by the best

mutual funds this shows you here that

more people are starting to get serious

about pltr it's remaining in the

headlines and of course we've seen

everything that they've done in terms of

contract releases from both the

government and the commercial side that

have came to the public light and we're

seeing other AI stocks that are kind of

continuing to fuel this rally across the

board and people talking about that

paler has crossed this buy point right

here after clearing a very early trend

line past this 2657 buy point in this

cup and handle we're starting to see see

this Fuel and this extended run and why

this could go into an extension here

consolidating support above its 21-day

exponential move average moving average

I think is dear due to the fact that we

have earnings now that is probably going

to be less than a month away we don't

have the official announcement from

pound here however we're guesstimating

what Wall Street is guesstimating is

about 8 cents for earnings per share

correlated with a revenue of 652

million we're going to be talking about

here in a second why P your stock is up

60% this year and could it even double

before the year is over let's take a

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back to the

video talking about this article here

and where this comes from from Yahoo

Finance in mle full talking about the

stock is up over 60% here in 2024 it's

more than halfway to a double so the

question becomes could P here really

double over the entirety of

2024 we've seen strong metrics with its

business with its balance sheet and

overcoming some of the big challenges

and the launch for AIP has been an

incredible success variable for pltr and

that the growth has really been strong I

think nobody can really doubt that and

what we're specifically talking about is

one of the biggest criticisms that leads

into and what investors are talking

about but we're starting to see people I

think coming to terms with that biggest

criticism and that is its valuation

ladies and gentlemen we've all talked

about this this is the elephant in the

room for pltr we know that the valuation

is through the roof and that pounder is

very expensive right now but what are we

seeing we're seeing the momentum that

continues and that's what we talked

about in yesterday's video regarding the

breakout here and of course you're going

to have more speculation you're going to

have more risk assessment that needs to

be conducted as this gets more

speculative and risky in nature

especially as pltr climbs into this High

valuation but what the majority of the

market is predicting right now is that

penter is going to continue to grow into

that

valuation and what this means is that if

everybody thinks and we're starting to

see institutional investors jumping on

board now if everybody thinks that paler

is going to continue to number one

accumulate in a share price along with

its market cap capitalization via the

expansion of AIP and the further

establishment of these governmental

contracts then no wonder why it has a

high valuation and of course the stock

is expensive for its growth but we're

not seeing any slow down in the momentum

and that's what we're talking about here

especially here with the market we have

the S&P 500 that is still

continuing to set record highs S&P 500

topping here over

5600 what we see is NASDAQ up over a

percent today S&P up another per on the

day this is in continuation and

especially here what we have is AMD

being a big force behind the leap right

now in these semiconductor chip

companies that are continuing to show

robust demand that does not have a any

signs of cooling down that's what I'm

seeing right now my own personal opinion

and what this aligns with is that we

have pow that returns here for the

second day of the testimony talking

about and basically reiterating and

echoing many of the comments from the

day before we're not seeing a lot of

changes and the market likes this and

this is because he was not really

sending any signals about when Cuts you

know are expected to arrive but he

pointed out the dial and sides of being

too late hey this could enter us into a

recession da da talking about looking at

both sides but not a ton of additional

com coms so the market is still kind of

holding that same probability that we're

going to have those first interest rate

Cuts come September that's sitting

around 70 to 80% depending on the

sources that you're looking at and also

we're still seeing at about a 70 80%

probability that we're going to see

about two interest rate Cuts this year

now of course a big big indicator that's

going to be released tomorrow continue

on with these Market variables is the

CPI date

the expenditures index talking about

what we're going to see with Consumer

Price how this is going to have an

effect on the market the FED does like

to use CPI data as a big gauge for

inflation and I think if we continue to

see this trend that inflation is cooling

this is only going to further increase

the probability that the FED will make

those first interest ratees Cuts come

September in light of that what we're

seeing on top of the bullish news that

is came from not just only pltr but also

with all the AI stocks is NVIDIA is

continuing to soar we see them up about

another 3% in the day closing here at

134 nearly 135 in the after hours

remember we talked about in the previous

videos we see analysts that are

increasing their price targets we're

talking 150 bucks that would be $1500

before the 10 for one stock split and

can Nvidia sustain this surge as a stock

price nears record

highs like I said it's not really

focusing and personally what I'm doing

is not really just focusing on

sustainability right now but more just

embracing the momentum that is behind

the AI market and of course these things

are trading at a high premium like I

said there's no doubt behind that but

everybody hopping on board and trying to

hop on this rally this is what I'm

talking about in terms of momentum in

really valuation kind of being chucked

out the window we see truist here saying

that the earnings growth driven by the

sales is basically key to the stock

maintaining its

outperformance Nvidia has continued

along with pente tier to pose very very

lucrative earnings

reports and I think if we're seeing this

along with of course them now making

chips once per year instead of every

other year then all these competitors

are going to compete to make the best AI

chips in the

game in summary here the AI arms race is

you can see right in front of our eyes

and with only a year that we've been

talking about it still could be

definitely in its infancy palent here on

the software side I think is doing a

wonderful job and I think we're going to

continue to see that momentum especially

as earnings is only a month away we're

going to be gearing up on that hype and

we're going to see a lot of trading

based off that what do you guys think

down in the comments about all these

opinions that I talked about here what

we're seeing with P do you think 30s is

here in the near future peace out take

care and I'll catch you guys later