Why the Palantir Weekly Options Trade was Originally
Shares of Palantir
Technologies Inc (NYSE: PLTR) soared 31% after the company posted
blowout financial results.
However, despite this
climb in stock price, the company, known for its defense and intelligence work
with the US and international governments, is set to ride the wave of AI hype.
solidifying itself as a top pick to gain exposure to the artificial
intelligence revolution that's underway, according to Wedbush Securities.
the company's strong earnings beat for the last three months of 2023, Wedbush's
Dan Ives raised the firm's 12-month price target for shares of the tech company
to $30, representing nearly 80% upside from Monday's closing level of $16.72.
night for Palantir was when this company went from an off Broadway play to a
primetime Broadway theater right off of Times Square under the bright
lights," Ives said in the note, assigning Palantir an
Palantir's CEO Alex Karp
said in a letter to shareholders that commercial demand for large language
models continues to be "unrelenting."
"It's clear that as
AI use cases explode, enterprise CIOs are looking towards Karp & Co. as the
AI golden child for a platform to build out AI frameworks for the future,"
The Palantir Weekly Options Potential Profit
** OPTION TRADE: Buy PLTR MAR 08 2024 24.000 CALLS - price at last close was $1.38 - adjust accordingly.
Obviously the results will vary from trader to trader
depending on entry cost and exit price that was undertaken.
Entered the PLTR Weekly Options (CALL) Trade on Thursday, February 08, 2024 for $1.23.
Sold HALF the PLTR weekly options contracts on Thursday, February 08, 2024 for $2.14; a potential profit of74%.
(This result will
vary for members depending on their entry and exit strategies).
remaining contracts for further profit!
Don’t miss out on further trades – become a
About Palantir Technologies.....
Technologies Inc. is an SaaS company focused on AI and big data analytics. It
was founded in 2003 in Denver, Co by well-known investors Peter Thiel and
Stephen Cohen among others. The company’s goal is to augment human intelligence
with data-gathering and analytic tools that can change the world for the
better. As of 2022, Stephen Cohen, co-founder Alexander Karp, and Peter Thiel
were president, CEO, and Chairman respectively.
intended as a tool for the Federal Government, the company has since expanded
to serve state and local governments as well as private corporations. The
company’s name is based on J.R.R. Tolkien's Lord of the Rings trilogy. The
palanteri are indestructible crystal globes used for seeing across great
company builds and deploys solutions for its clients based on three primary
offerings. These are Palantir Gotham, Palantir Apollo, Palantir Foundry, and
Palantir Metropolis. The goal is to generate alpha, or a competitive advantage,
for its clients so they can succeed in a rapidly changing environment.
company’s core offering is Palantir Gotham. Palantir Gotham was originally
intended for the US intelligence community as a counter-terrorism tool but it
has since been deployed by state and local governments as well as private
enterprises as a global decision-making tool. Users are able to aggregate data
from hundreds of inputs and funnel them into a single view for rapid
decision-making and execution. The tool, which looks for and analyzes hidden
patterns in deep data sets, has been used for “predictive policing” and has
drawn some criticism because of it.
Apollo is an operating system designed to give continuous delivery and
deployment of safe, secure Internet access across all operating environments.
The system is 1 of 5 recognized by the Department of Defense as a Mission
Critical National Security System and used by businesses and organizations for
autonomous software deployment. Among its advantages, the system can speed up
the development of new software by as much as 50% simply by securing access to
sensitive information and networks.
Further Catalysts for the PLTR Weekly Options Trade…..
The tech firm anticipates US commercial revenue to surpass $640 million
in 2024, reflecting growth of at least 40%. Palantir reported on Monday that
fourth-quarter revenue increased by 20% to $608.4 million, exceeding Wall
Street's estimates of $602.4 million in revenue.
Palantir's U.S. commercial revenues skyrocketed by 70% YoY last quarter.
Overall commercial revenues increased by 32% YoY. This dynamic suggests that
U.S. companies are ahead of the curve in utilizing Palantir's solutions
relative to their European and foreign counterparts. We should continue seeing
robust commercial growth, with international commercial growth likely
increasing in future quarters.
In Q4, Palantir closed 103 $1M+ deals, about a 100% increase over last
year's Q4. U.S. commercial customer count expanded by 55% YoY and 22% QoQ. U.S.
commercial count has now grown 13x in the previous three years. Palantir also
reported its fifth consecutive quarter of adjusted operating margins and its
fifth consecutive quarter of GAAP profitability.
Wall Street's hype for AI is still high even after the nascent technology
fueled huge gains across the tech sector in 2023. Chip maker Nvidia has notched
new highs in the last week after earnings from giants including Microsoft and
Meta Platforms pointed to big plans for AI and demand for the GPUs that power
While a handful of mega-cap names continue to produce the biggest returns
for investors, markets are looking for the next opportunity in AI as valuations
among the Magnificent Seven look extreme and as many experts warn of a
potential bubble reminiscent of the dot-com era.
Palantir, Ives says, is one such opportunity in AI.
"In a nutshell, PLTR remains an undiscovered gem and a core part of
our thesis in the AI Revolution just now taking shape across the tech
world," Ives added.
being in business for over twenty years, Palantir Technologies Inc. (NYSE:PLTR)
is just getting started in many ways. Palantir was widely regarded as a
secretive government contractor for many years. It was so mysterious that many
market participants had no idea what Palantir did. However, now that Palantir
is hitting the mainstream, its commercial business is booming.
with its dominant market-leading position in AI software and services, Palantir
could experience exponential growth and increased profitability for years.
While Palantir's stock is up by over 100% over the last year, its "Nvidia
moment" hasn't arrived yet. Nonetheless, its coming and the stock should
go considerably higher in the near future.
Palantir had an excellent earnings report last quarter (Q3
2023), and we're seeing more of the same in Q4. Palantir's stock surged in
early November after it reported Q3 earnings but failed to break out above the
$20-$22 resistance range. As a result, Palantir came back down to the $15-$16
range, filling the gap and creating an excellent long-term buying opportunity.
On Monday, Palantir provided another solid earnings
announcement. Therefore, it's highly probable that Palantir will retest the
all-important $20-$22 resistance range. However, this time, we may see a
breakout to $25 or higher, as Palantir's stock has consolidated for around
eight months and has many constructive technical and fundamental tailwinds.
The CCI, RSI, full stochastic, and other technical gauges
are turning upward, implying that a shift to a more bullish momentum is
approaching and could propel the stock considerably higher. Also, Palantir's
stock has made a series of higher highs and higher lows, suggesting the stock
is looking for a breakout to higher trading levels. Palantir's stock is also
between the 50 and 200-day MAs, illustrating that it is no longer overbought
technically, providing a solid setup to move higher.
Artificial Intelligence Platform "AIP".....
Palantir's Artificial Intelligence Platform "AIP" is a
full-spectrum AI platform that drives enterprise operations.
Palantir offers AIP boot camps to get customers from zero to use cases
in days, enabling enterprises to solve real business problems immediately. AIP
is powered by Ontology, a decision-centric system at the heart of AIP that
integrates AI with enterprise data, logic, and action. From secure LLM access
to end-user applications, AIP provides an integrated architecture that brings
full spectrum AI to life, optimizing the everyday decision-making process.
organization, government, and commercial, domestic and foreign, can benefit
from Palantir's comprehensive solutions and services. Palantir has an enormous
market share to acquire in future years, making its stock one of the best
buy-and-hold candidates for the next decade.
According to the issued ratings of 14 analysts in the last
year, the consensus rating for Palantir Technologies stock is Reduce based on
the current 4 sell ratings, 7 hold ratings and 3 buy ratings for PLTR. The
average twelve-month price prediction for Palantir Technologies is $15.25 with
a high price target of $30.00 and a low price target of $5.00.
As of Feb. 7, PLTR stock had advanced 37% in 2024 following
the Q4 earnings report. Also, Palantir stock jumped 167% in 2023. The Nasdaq
composite climbed 43% while the S&P 500 rose 24%.
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
Now Palantir aims to use generative AI to spur growth in the
commercial market. The software maker has expanded into health care, energy and
Palantir Technologies has a 50 day simple moving average of
$17.37 and a 200-day simple moving average of $16.91. The stock has a market
cap of $51.35 billion, a price-to-earnings ratio of 260.92, and a PEG ratio of
1.97 and a beta of 2.66.