Palantir Technologies (NASDAQ: PLTR) has been one of the top-performing stocks this year. The company’s strong results led to the stock’s inclusion on the S&P 500, and now it has moved to the Nasdaq stock exchange, where it could soon join the even more exclusive Nasdaq 100 index.
Could this become yet another catalyst that pushes this high-powered artificial intelligence (AI) stock even higher?
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At first glance, Palantir’s move from the New York Stock Exchange to Nasdaq may not seem like a big move since many top growth stocks are on both exchanges.
But what has investors excited is the potential for it to be added to the Nasdaq 100 index, which contains the largest nonfinancial stocks on the exchange. And with many stocks on the Nasdaq 100 trading with market caps of less than $100 billion, it should be a slam dunk for Palantir, which is worth more than $145 billion, to make it onto the index.
That’s significant because if it’s in the index, it will mean the stock is included in more exchange-traded funds and portfolios. All that buying could inevitably send the stock’s value even higher. The addition to the index will also be a great sign of the data analytics company’s mammoth success over the years, and validation of its efforts and strong growth.
As a top technology and AI stock, Palantir could also become more popular with anyone who may not be that familiar with its business. It’s hard to imagine many investors not being aware of one of the hottest growth stocks on the markets this year, but being on a highly recognizable index can attract even more attention to Palantir.
While more investors may notice Palantir, what many of them will also pay close attention to is the stock’s extremely high valuation. With such a massive market cap, the stock is trading at 58 times the revenue it has generated over the past 12 months and more than 320 times the profit it posted. There’s no valuation multiple that stands out with Palantir that can…
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