To The Moon

Pioneer of artificial intelligence-driven software systems, Palantir is enjoying increasing acceptance of its flagship products, which include its Artificial Intelligence Platform. The business claims increasing demand for enterprise-ready generative AI technologies and has developed a strong partner network. Analysts at Wedbush view this as a significant expansion path for Palantir, forecasting the business may follow a trajectory similar to that of Oracle (ORCL, Financials) over the next decade.

The financial might of Palantir supports this perspective. Along with 30% year-over-year sales increase, the corporation closed its third quarter with $4.6 billion in net cash and debt free. With a 54% increase in demand, the American commercial sector is clearly doing very well. Its value is still up for discussion, however, as some market watchers wonder whether it can be sustainable given lofty growth projections.

My Position For Palantir Is For Long Term

I am holding my position on Palantir for the long term as I believe that the next AI revolution comes 2025 would be on AI software and AI platform, this should also bring those hyperscalers into the play.

With more companies looking for one place to manage their AI operations, Palantir AIP make it a ideal place to manage the data or huge data that companies might have.

Global AI Platform Market Growth - Beneficial For Palantir

Key growth factors include the surge in data volume within organizations, the demand for AI-driven insights for proactive system management, and the need for automated and efficient operational processes. Top opportunities lie in integrating AIOps with cloud computing and expanding its adoption in small to medium-sized enterprises for scalable IT infrastructure management.

The AI for IT Operations (AIOps) platform market is experiencing significant growth, driven by the need for enhanced IT operations management. AIOps platforms utilize artificial intelligence to streamline and automate IT operational processes, thereby improving efficiency and reducing downtime.

As seen in the chart below, the growth of the AI for IT Operations Platform CAGR is ar 16.8%, and we are looking at 10.2% growth for 2025.

With $Palantir Technologies Inc.(PLTR)$ winning more government contract and also their commercial side is growing as well, we could see a better performance in 2025 for Palantir.

Palantir (PLTR) Might Form Buy Target Around $70

If we have been following how PLTR have managed to reach $84 during the start of the santa rally, we have seen it coming down, and it is trying to hold the level at around $77.

But I believe there will be quite some heavy institutional selling on the first week of January, as they adjust their portfolio, if you are an investor who might not be looking for long term for Palantir, then you might want to look at taking profits.

I foresee that Palantir might trying to go towards $70, unless it can form another buying volume and also KDJ to get back up.

Palantir (PLTR) Option Skew Show Slightly Bearish

The implied volatility skew shows the market's bias for pricing in volatility risk to the option premium of downside puts and upside calls. The implied volatility for downside puts is increasing relative to upside calls, this suggests the market is pricing in a larger fear to a downside move.

I would put it as an opportunity for us to look into getting into PLTR as it make its reversal to the bullish side. The current skew indicator is showing slightly bearish.

Summary

I strongly believe that Palantir should give us a strong January after the institutional investors complete their portfolio re-allocation.

There should be more contracts coming for Palantir as companies go into their budget planning for the new financial year which most companies start theirs from January.

Appreciate if you could share your thoughts in the comment section whether you think Palantir would continue to show growth in 2025 comes January.

@TigerStars @Daily_Discussion @Tiger_Earnings @TigerWire appreciate if you could feature this article so that fellow tiger would benefit from my investing and trading thoughts.

Disclaimer: The analysis and result presented does not recommend or suggest any investing in the said stock. This is purely for Analysis.