Palantir Technologies saw a sharp rise in its stock price following an impressive third-quarter earnings report.
The analytics and AI-driven software provider, known for its government and commercial partnerships, exceeded Wall Street expectations on revenue and earnings per share, boosting its stock more than 13% in after-hours trading on Monday. As a result, shares have more than doubled this year, driven by demand for the company’s AI solutions from both US government agencies and commercial clients.
CEO Alex Karp expressed optimism about Palantir’s trajectory, highlighting strong US demand for AI tools and software capabilities, which he described as part of a “US-driven AI revolution.” Karp also addressed the broader competitive landscape, emphasizing that institutions must adapt to AI technologies to stay competitive.
Analysts and investors are paying close attention to specific price points on Palantir’s chart. The stock’s price behavior leading up to earnings showed a pattern of consolidation within a broadening formation, with trading volume hitting its highest since early October. Investors are now watching overhead resistance levels around $45 and $60. If the stock sustains momentum, a close above $45 could signify a potential rally toward the upper target of $60.
During periods of profit-taking, an important support zone between $41 and $38 may attract buyers. This range is supported by the broadening formation’s lower trendline and the stock’s September peak, making it a potential level of support for those tracking price action.
Palantir’s significant AI demand stems from its partnerships with government and commercial entities, especially in the US The company provides AI tools to the US military and allied institutions, which contributed to a 44% increase in US revenue year-over-year. CEO Karp emphasized Palantir’s focus on AI, suggesting that AI capabilities will be essential for industries and institutions to remain competitive.
With input from Investopedia and Business Insider.
