Palantir Technologies has seen its stock rise in price in recent days.
Palantir is the software giant that debuted on Wall Street fairly recently, in October 2020 at just under $10. Listed on the NYSE under the ticker PLTR, it is now worth about $25, and a month ago, on February 9th, it peaked at $35.
What drove up the price of Palantir stock
There are several reasons for PLTR’s price growth. Setting the record straight, the rise in value would not appear to be connected to WallStreetBets, even though the topic is much discussed on the Reddit group responsible for GameStop’s short squeeze.
In fact, the price movements have been dictated by more “healthy” reasons than artificial pumps. For example, last week three partners put 2.7 million shares up for sale as a result of the end of the post-IPO lockup. This news triggered a sell-off that caused the shares to lose about 25% of their value in a short time.
Yesterday, however, another piece of news moved Palantir’s price up 5%. Cathie Wood‘s Ark Investments bought more than 3.3 million shares of Palantir. At the same time, Ark is said to have bought Twitter shares, selling Facebook and Apple shares.
However, since its launch, the price of Palantir has risen by around 190%, driven by the company’s good results. In fact, Palantir has not only signed collaboration agreements with companies of the calibre of IBM but can also boast staggering revenues, well above expectations.
Specifically, the company has announced that the fourth quarter of 2020 has recorded +40% of revenue compared to the same period last year, and +47% of the total annual revenue of $1.1 billion.
The year 2021 is looking bright: Palantir plans to increase its sales force, which will lead to higher revenues.
Analysts seem decidedly optimistic about its share price. As Capital.com explains, Goldman Sachs has revised its forecasts for PLTR to the upside, predicting a price of $34 per share in the near future. Jefferies Financial Group assumes a price of $40 per share. Wallet Investor is even more optimistic, saying that Palantir’s share price will be around $78 in December 2021, and could reach nearly $350 in 2025.
These forecasts, although issued by experts, should be taken with due caution. After all, the events of the past month have shown that the stock can also be very volatile and volatility is no guarantee of easy gains.