Is PLTR Stock A Buy? Here’s What Technical, Fundamental Analysis Shows About Palantir Stock

There’s plenty for bulls and bears to hash out over Palantir Technologies (PLTR). Bulls point to improved profitability for PLTR stock. Bears focus on decelerating revenue growth. Then there’s buzz over artificial intelligence stocks to consider.

Palantir stock fell on its second-quarter earnings report. Quarterly profit and sales met analyst estimates. But management’s outlook for PLTR stock disappointed some investors. The company also announced a $1 billion buyback for PLTR stock.

PLTR stock hit a 52-week intraday high on Aug. 1 as AI stocks continued to rally. But as of Aug. 28 PLTR stock has pulled back 27% from that 52-week high. Still, Palantir stock has jumped 130% in 2023.

In addition, shares still trade well below the software maker’s all-time intraday high of 45 set in late January 2021.

Artificial Intelligence A Growth Driver?

PLTR stock bulls point to artificial intelligence software as a growth driver. Palantir has already mined the AI opportunity with government customers for intelligence gathering, counterterrorism and military purposes.

Will generative AI spur growth in the commercial market for PLTR stock? The software maker has expanded into health care, energy and manufacturing.

In health care, Palantir customers possibly could use generative AI in applications such as drug discovery. Palantir announced its newest offering, the “Artificial Intelligence Platform,” earlier this year.

On its second-quarter earnings call with analysts, Palantir said. Palantir noted more than 100 organizations are using its new AI platform. Palantir has not disclosed pricing for AI products.

“Palantir’s primary goal is to drive usage and education, with the goal of monetizing at a later point,” Goldman Sachs analyst Gabriella Borges said in a note to clients.