Palantir Technologies (ticker: PLTR) has experienced an impressive surge in its stock performance this year, with shares reaching a two-year high. The stock has skyrocketed by over 200% in 2023, largely fueled by the investor frenzy surrounding artificial intelligence.
On Tuesday morning, the shares climbed to $20.02. If the price holds, this would mark the highest closing value since November 30, 2021, as reported by Dow Jones Market Data. However, despite the significant gains this year, the data-analytics software company’s shares are still down 49% from their record high of $39 on January 27, 2021.
Several factors have contributed to the recent boost in Palantir’s shares. In June, the company secured a lucrative multiyear contract worth up to $463 million to provide technology to the U.S. Special Operations Command. This announcement further propelled the stock’s growth.
Additionally, Wedbush analyst Dan Ives initiated coverage of Palantir in July, rating it as “Outperform” and hailing it as “The Messi of AI.” This validation from an industry expert added to the stock’s momentum.
August brought more positive news, as Palantir unveiled a $1 billion stock repurchase program and raised its guidance. Moreover, in the previous month, the tech giant posted impressive financial results for its third quarter, surpassing expectations.
Analysts hold mixed opinions on Palantir’s stock, with 30% recommending a “Buy” rating, 35% suggesting a “Neutral” rating, and another 35% advising a “Sell” rating, according to FactSet. However, the Wedbush analysts, led by Ives, maintain an optimistic outlook for the company.
In a recent report, they stated, “Our favorite tech names remain Apple, Microsoft, Google, Palo Alto, Palantir, Zscaler, CrowdStrike, and MongoDB. The macro story is overshadowing the biggest technology revolution in the last 30 years with AI a ‘1995 Moment,’ and we believe the fundamental tech growth stories/use cases are accelerating into 2024.”
Palantir Technologies continues to captivate investors and analysts alike, as its stock performance remains a focal point in the market.