Palantir Could Break Resistance Ahead of Earnings Report

NEW YORK, NY — Palantir Technologies is poised for a potential breakout ahead of its earnings report on November 3. Following an August sell-off driven by concerns over high valuations, the company’s stock has been quiet in both volatility and volume, setting up for what some analysts believe could be a move towards $200.

Palantir, a leader in AI and data analysis, experienced a significant dip earlier this year when the Nasdaq also fell. Many growth-focused AI companies faced similar declines, but since then, Palantir’s stock movements have stabilized. Trader Todd Gordon, founder of Inside Edge Capital, notes that he has recently added Palantir to his slower-moving growth portfolio, emphasizing his confidence in the company’s long-term potential.

The company is well-positioned with a large addressable market supported by long-term government contracts and expansion into commercial sectors, including healthcare and financial services. Despite a high forward valuation of 181 times expected earnings in 2026, Palantir has been generating substantial free cash flow, estimated at $1.1 billion for the current year, with projections nearing $2 billion for next year.

Gordon points out that Palantir’s revenue growth shows consistent positive trends, with expectations for a 48% increase next year and a remarkable 131% growth in GAAP EPS by 2026. He compares Palantir to Nvidia, highlighting its potential for major growth in the software space.

On the technical side, the stock has established a support level just below $160, which analysts are watching closely. A break above $190 would signal a potential rally, while remaining above $180 could encourage further buying. Gordon holds a significant position in Palantir and indicates that any further strength might lead to an increase in his portfolio’s allocation.

As investors await the upcoming earnings report, they will be keenly observing both the fundamentals and technical indicators to gauge Palantir’s trajectory in the market.