What is Palantir
PayPal (PYPL) co-founder Peter Thiel, Nathan Gettings, Joe Lonsdale, Stephen Cohen, and Alex Karp launched Palantir in the early 2000s. The corporate name is drawn from The Lord of the Rings' palantiri, crystal ball-like "seeing stones."
Palantir Gotham, which is largely utilized by government agencies; Palantir Metropolis, which is used by banks, financial services businesses, and hedge funds; and Palantir Foundry, which is used by corporate clients, are the three platforms offered by the Denver-based corporation.
Palantir and IBM (IBM) launched global cooperation earlier this year to accelerate corporate adoption of artificial intelligence software. Palantir made its Foundry software available to IBM's cloud computing clients as part of the deal. Users may manage, filter, and visualize massive data sets using the Foundry platform, which is a centralized data operating system.
Palantir is a publicly traded company, making its stock available to anyone of legal age interested in purchasing shares.
Why Buy Palantir Shares (PLTR)
Palantir shares will rise and fall in value according to how well the company is performing at a given moment in time. Better-than-expected earnings will make Palantir share prices rise, while weaker earnings will make share prices fall. However, there are many reasons why a company's share price can change.
People trade Palantir shares because, just like other financial instruments, they can be an opportunity to invest money. At a basic level, you can take a position on Palantir shares to get exposure to economic growth. If an economy is in good shape, you might find that companies operating in that specific economic branch or industry will grow too.
Company growth is correlated with share price increases, which is what people are hoping for when they buy Palantir shares.
Palantir (NYSE: PLTR) didn't gain much attention when it went public via a direct listing last September. The data-mining firm's stock started trading at $10 a share but remained below that level for most of the following month.
Palantir's stock started to heat up last November after it posted a strong third-quarter report and predicted its revenue would increase 44% in fiscal 2020. It attributed that acceleration to its growth in new government contracts, and further predicted its revenue would rise at least 30% in fiscal 2021.
Palantir's rosy outlook turned it into a hot topic on the online social forum Reddit, and the stock skyrocketed to $45 per share in late January alongside other "meme stocks" like GameStop and AMC.
But those gains were unsustainable, and Palantir's stock retreated back to the high teens in May. The rotation from higher-growth tech stocks to reopening-oriented value stocks exacerbated its sell-off.
Palantir stock is traded on the New York Stock Exchange under the PLTR ticker.
If all that makes you want in on Palantir’s software growth, here is everything you need to know to buy Palantir stock & shares to invest in PLTR.
How to Buy Palantir Shares
Learning how to buy shares may not sound complicated, but you will need to do some research — and learn the basics — before making your first investment.
- Learn the difference between investing and trading
- Review Palantir’s performance and outlook 2022
- Understand the risks and charges
- Access the trading platform and place your orders
- Stay up to date with the latest news and rumors about Palantir
1. Learn the difference between investing and trading
People have two options to buy shares of stock online. Firstly, they can buy shares in companies on the exchanges where they are listed. For instance, you can buy Palantir stock on the NASDAQ exchange, so you own a share in the company (investor). Alternatively, they can buy Palantir shares without owning them, speculating on the price of the underlying asset (trader).
Investing and trading are similar terms that some people will sometimes use interchangeably – but there are significant differences for you to be aware of.
Investing in Palantir Stock
Investors buy Palantir shares hoping their price will rise and they can sell them later for a profit, adhering to the basic principle of buying low and selling high. Investors will take positions over a longer period, attempting to profit from share price changes as well as dividend payments.
While this means that they might need more initial capital to get started when compared to trading, their losses would be capped at this initial price tag. That said, investors should be aware they might get back fewer returns than they initially invested.
Investors will buy Palantir shares to:
- Make a profit from the Palantir share price rising
- Receive an income from dividends if the company pays them
- Benefit from the effects of compounding
This last point requires investors to hold onto their shares for an extended period. That’s why you’ll sometimes hear the phrase ”time in the markets is better than timing the markets” when talking about share investments.
>> Learn how to invest in stocks
Palantir (or any single stock, for that matter) can be a very volatile investment. You can lower the risk by diversifying your investment holdings.
An index fund is a type of mutual fund or exchange-traded fund (ETF) with a portfolio constructed to match or track the components of a financial market index, such as the Standard & Poor's 500 Index (S&P 500). An index mutual fund provides a broad market exposure, low operating expenses, and low portfolio turnover. These funds follow their benchmark index regardless of the state of the markets.
PLTR currently makes 0.1% of Russel 1000 index, meaning $0.001 of each dollar you invest in a Russel index fund goes to Palantir.
Cybersecurity exchange-traded funds (ETFs) provide exposure to the performance of companies within the global software industry.
PLTR makes up 6.85% of VLCO (Simplify Volt Cloud and Cybersecurity Disruption ETF), 4.31% of DAT (ProShares Big Data Refiners ETF), 4.00% of MEME (Roundhill Meme ETF), 3.60% of BIGY (Defiance Next Gen Big Data ETF), 3.32% of IPO (Renaissance IPO ETF).
>> Learn what ETFs are and how do they work
Trading Palantir CFDs
On the other hand, traders might seek to capitalize on short-term share price gains. Rather than investing in the shares, traders speculate on the shares’ value. They can speculate on it rising by going long, as well as falling by going short.
Trading Palantir stock means that you are speculating on a share’s price movements with derivatives like CFDs. In other words, you are purchasing Palantir shares without taking direct ownership.
Leverage is available when you use this product, giving you full market exposure for an initial deposit – known as margin – to open your position.
For example, a trader who wanted to buy 1,000 Palantir shares CFD at $15.00 per share would only require $3,000 of trading capital, thereby leaving the remaining $12,000 available for additional trades.
But keep in mind that leverage can increase both your profits and your losses as they will be based on the full exposure of the trade, not just the margin requirement needed to open it. This means losses, as well as profits, could far exceed your margin.
With CFDs, you can ‘buy’ (go long) the shares if you think the Palantir stock’s price will rise, or you can ‘sell’ (go short) if you think the Palantir stock’s price will fall.
>> Learn what is CFD trading and how it works
Going Long Palantir CFD
Palantir has a sell price of $14.00 and a buy price of $14.20.
Palantir’s next earnings announcement is fast approaching, and you expect it to be good news.
You think the company’s share price will go up, so you buy 2,000 Palantir CFDs at $14.20 This is the equivalent of buying 2,000 Palantir shares.
Because in CFD trading you can use leverage, you do not need to put up the full value of Palantir shares. Instead, you only need to cover the margin, which is calculated by multiplying your exposure with the margin factor for the market you are trading.
So, if Palantir has a margin factor of 20%, your margin would be 20% of the total exposure of your trade (2,000 share CFDs x $14.02 = $28,040), which is $5,608.
If your prediction is correct:
When Palantir announces its results, it is clear the company had a successful quarter and as you had predicted, its share price climbs.
You decide to close your position when it reaches $15.22, with a buy price of $15.24 and a selling price of $15.22
You reverse your trade to close a position, so you sell your 2,000 CFDs for $15.22
To calculate your profit, you multiply the difference between the closing price and the opening price of your position by its size. $15.22– $14.02 = $1.20, which you multiply by 2,000 CFDs to get a profit of $2,400.
If your prediction is wrong:
Palantir’s results are worse than expected, and its share price immediately falls. You decide to cut your losses and sell your 2,000 CFDs at $136.00.
Your position has moved $0.42 against you, meaning you suffer a loss of $840.
Going Short Palantir CFD
Shorting with derivatives can be an effective way to protect your investments against downward price movements in your non-leveraged investment portfolio. Also, it can be a way to generate profits outright from shares that are falling in value. But when you go short, your potential losses are theoretically uncapped because there is no limit on how high a company’s share price can rise.
Here is an example:
Suppose Palantir shares are currently trading with a selling price of $14.00, and you think the price will go down. So, you decide to open a short CFD position on 1,000 Palantir shares CFD. A week later, the buy price reaches $12.40, and you close your position. This means you made $1,800 in profit ([14.20 - 12.40] x 1,000 = $1,800), excluding additional costs.
If the price rises, you register a loss. For example, if Palantir shares rose to a price of $14.53, you would suffer a $530 loss instead, excluding additional costs.
When you create a trading account with CAPEX, you will be able to:
- ‘Buy’ (go long) or ‘sell’ (go short) Palantir and other 2,000 international shares to speculate on their price rising or falling
- Take a position on our range of ETFs to get exposure to a basket of shares from an entire country, index, or sector that could be rising or falling in price.
- Trade a host of global indices to go long or short on the performance of an entire economy with a single trade.
- Use QuantX, the smart portfolio builder that helps you cover the popular industries and only invest in the top-performing stocks.
2. Review Palantir’s Performance and Outlook 2022
Before buying Palantir stock—or any stock (see our guide on how to buy shares)—it’s wise to do some research into the company’s financials, performance, and outlook. The easiest place to get started is through a company’s annual reports and quarterly reports. Public companies like PLTR are required to publicize detailed information about their financial health in these.
You can find these on Palantir’s investor relations site or by searching the Securities and Exchange Commission’s (SEC) database.
You may also turn to experts for their input. Brokerage companies frequently release commentary on major stocks and industries, and third-party evaluators like Trading Central provide comprehensive technical and fundamental analysis.
When you combine financial data with expert insight, you will be able to decide how much of your money you want to put into Palantir stock.
Palantir Shares Forecast - Fundamental Outlook 2022
Before you load up the trunk with Palantir shares, pop opens the hood and see what you are really getting into. Remember, when you buy Palantir stock, you are purchasing a small portion of an actual business:
Palantir builds and deploys operating systems for the modern enterprise.
Palantir's balance sheet, income statement, competition, and management (all explained in our guide on how to research stocks) will help you give the company a good once-over.
You can access research, analyst ratings, and other key information about Palantir via your brokerage account or a financial information website. If you like what you see, your next step is to consider whether Palantir fits into your current investment portfolio.
Palantir's market capitalization is $33.98B
- The Return On Assets for PLTR is -15.90%. This is lower than the -5.44 percent industry average.
- The profit margin for PLTR is -35.81 percent. This is lower than the -13.93 percent industry average.
- The low PEG Ratio, which accounts for growth in the Price/Earnings ratio, shows that the company is undervalued.
- With a Price/Earnings Ratio of 92.72, PLTR is now considered to be very pricey.
- PLTR is somewhat more costly than the industry average Price/Earning Ratio of 48.78.
- The Forward Price/Earnings Ratio of 80.41 shows that PLTR is now overvalued.
- When we compare the current price to the book value of PLTR, we can see that it is overvalued. It is currently trading at a price of 14.58 times its book value.
- When compared to the industry average price-book ratio of 5.55, PLTR is more expensive than its rivals.
- PLTR is expected to increase at a very fast rate in earnings per share over the next five years, according to projections. On average, EPS will increase by 45.12 percent per year.
- The revenue of PLTR is increasing rapidly. In the last year, the Revenue has grown by 47.15%.
- PLTR has seen very good revenue growth during the last 5 years. The revenue has been increasing at a rate of 35.47 percent every year on average.
- PLTR's revenue is expected to expand rapidly over the next five years, according to projections. On average, revenue will increase by 30.62 percent per year.
- Revenue growth is stable: over the next five years, growth will be similar to that of the previous five years.
- Earnings Per Share (EPS) for PLTR has been steadily declining. The EPS declined by -85.08 percent in the previous year.
- With a Current Ratio of 4.13, PLTR has no problems meeting its short-term obligations.
- When compared to the average industry Current Ratio of 2.04, PLTR is better positioned to satisfy its short-term obligations than the average business competitor.
- The Quick Ratio of PLTR is 4.13. This shows that PLTR is financially sound and will be able to satisfy its short-term obligations without difficulty.
- When compared to the average industry Quick Ratio of 2.01, PLTR is better positioned to satisfy its short-term obligations than the average business competitor.
- PLTR's Debt to Equity Ratio is in accordance with industry standards.
*Last update: December 2021. Source: Yahoo Finance
Palantir has never declared or paid a cash dividend and does not intend to pay.
Palantir Shares Forecast - Technical Outlook 2022
Technical traders analyze price charts to attempt to predict price movement. The two primary variables for technical analysis are the time frames considered and the technical indicators that a trader chooses to utilize.
Our web-trading platform, for example, offers 6 chart types (including the famous Japanese candlestick chart) to help you analyze price performance across different timeframes. It also enables you to deal in an instant – directly from the charts. You will be able to open, close and edit positions in just a couple of clicks.
Trading charts always feature distinct patterns that technical analysts can use to interpret the behavior of buyers and sellers. These chart patterns can give traders an indication of where the market could go next. As you will notice when you look at a chart, the market will usually move in one overall direction or trend. There are three types of market trends: uptrends, downtrends, and sideways trends.
Palantir stock has been in a downtrend since February 2021 and it has recently broken the previous year's low.
The price chart shows a clear sideways movement (range market) with price testing the support of the range. The technical indicators signal a bearish divergence and PLTR stocks can rebound from this level.
Speculators can use this level for short-term trades within the range, as the risk/reward ratio is favorable. The next resistance and potential profit target is $21. The long-term target for the 2022 high is $26.
To buy Palantir shares or not?
It is recommended to watch for stocks in the major long-term support area. We should buy Palantir shares at relatively cheap prices (compared to historical values), not expensive prices. Also, have an exit plan for how you will exit a profitable trade. Define how and why you will exit. Since we used to support to get into the trade, you may consider exiting just below a long-term resistance level.
If buying at support, and planning to exit just below resistance, the upside potential should outweigh the downside risk by at least 2:1 or even 3:1. That means that if you buy Palantir shares at $16, you should be reasonably able to get out of the stock at $13 or higher. In an absolute worst case you lose $3 a share, but based on the historical chart it is quite feasible to go up to $6/share or more. This is known as the risk/reward ratio, a key indicator when deciding to buy Palantir shares or not.
With CAPEX WebTrader, you can perform an in-depth analysis of the charts with 90 indicators (including moving average, MACD, RSI, and Bollinger Bands). The platform also supports an interactive trading activity with high-end research tools helping you interpret market data.
Analyst consensus - HOLD
The current consensus among 11 polled investment analysts is to hold stock in Palantir Technologies Inc. The hold percentage consensus is above 50%. So analysts seem to be rather neutral about PLTR.
- Buy (2)
- Hold (5)
- Sell (4)
The price target on Palantir (+42.35%)
The 8 analysts offering 12-month price forecasts for Palantir Technologies Inc have a median target of 24.00, with a high estimate of 25.00 and a low estimate of 17.00. The median estimate represents a +42.35% increase from the last price of 16.86.
3. Understand the risks and charges
Trading can be seen as riskier than investing due to leverage. But investing also carries a risk – and there is no guarantee that your investments would increase in value, so you could receive back less than you initially invested.
Before deciding to trade in shares, you should take steps to manage your risk. We have courses at CAPEX Academy that take you through risk management and how to mitigate your exposure to risk in the financial markets.
Our costs and charges for trading vary depending on the product that you use to take a position.
Palantir (PLTR) CFD Trading Conditions
|SPREAD PER UNIT||0.11 pips||LEVERAGE||1:5|
|OVERNIGHT ROLLOVER - LONG||-0.0076 %||OVERNIGHT ROLLOVER - SHORT||-0.0063 %|
|INITIAL MARGIN||20.0000 %||MAINTENANCE MARGIN||10.0000 %|
- Spread represents the difference between ASK price and BID price.
- Future Rollover adjustment consists of the difference in price between expiring contract and new contract as well as the spread of the CFD.
- Swap is the amount credited to or debited from an account where positions are held overnight.
- Inactivity fee represents the monthly amount deducted if no activity is recorded for 12 months in an account.
4. Access the trading platform and place your orders
To buy Palantir shares CFD with CAPEX Webtrader is very easy and intuitive. Opening an online trading account is as easy as setting up a bank account. Here are the steps:
Open an account or log in
First, create an account or log in on capex.com. To open an account, click the "Register" button and complete your details.
Once the platform is accessed, the registration process must be completed in order to operate with real money. Click "Complete the Registration and Start Trading".
To log in, from the CAPEX website, click on "Login".
Deposit funds into your account
To trade with a live account, it is necessary to deposit funds. This is done from the platform itself by clicking on the "Add funds" button:
Also, it is possible to trade on a risk-free demo account with a balance of € 50,000, which is ideal for getting to know the platform and testing trading strategies.
CAPEX offers you different payment methods: debit cards, credit cards, bank transfer, skrill, and more.
It is noteworthy that CAPEX does not charge any fees or commissions for depositing funds.
Look for Palantir shares
To view Palantir shares (PLTR) real-time price and chart on the trading platform can click on the "Search" icon located in the left panel or by clicking on "Shares" and then select the instrument, in this case, Palantir.
Use the indicators and drawings to analyze the chart
Click the indicators icon and select your favorite ones. There are trend-following, oscillators, volatility, and support/resistance indicators available. To learn how many indicators to use and how to combine then visit the Technical Indicators section in CAPEX Academy.
Set up the order to buy Palantir shares
To buy Palantir shares CFD, click on the "Buy" button and a window is displayed to configure the purchase order:
The number of Palantir shares to be purchased must be entered and it is allowed to set up a Stop Loss to limit the potential loss, and/or a Take Profit to close a profitable position once the Palantir stock reaches a specific price. These orders can be configured based on price, pips, cash value, or percentage.
To proceed with the purchase, click on "Place Order".
However, PLTR trading does not end here. You will want to check out the next step to make sure you are investing your money as well as you can.
Why Trade Palantir with CAPEX?
- Advanced AI technology at its core: Whether they prefer the web-based and mobile-ready WebTrader or favor the highly popular MetaTrader 5, we make sure investors make effective use of fast and reliable trade execution speeds, complex order and risk management tools, advanced charting options, powerful research tools in collaboration with highly-regarded platforms such as Trading Central or TipRanks.
- Trading on margin: Providing trading on margin (up to 5:1 for individual equities), CAPEX gives you access to the stock market with the help of CFDs.
- Trading the difference: When trading Palantir CFD, you do not buy the underlying asset itself, meaning you are not tied to it. You only speculate on the rise or fall of the Palantir stock price. Online trading with CFDs is nothing different from traditional trading in terms of strategies. A CFD investor can go short or long, set stop loss, take profit, and apply trading scenarios aligned with their objectives.
- All-round trading analysis: The browser-based platform allows traders to shape their market analysis and forecasts with sleek technical indicators. CAPEX provides live market updates and various chart formats, available on desktop, iOS, and Android.
- Focus on safety: capex.com is operated by Key Way Investments Ltd and is authorized and regulated by the Cyprus Securities and Exchange Commission (CySEC) (license no. 292/16).
- Global partnerships: CAPEX is proud to be the Proud Sponsor of Juventus, one of the most prestigious football clubs in the world, a football club that has a special place in the hearts of the people of Italy, with a strong legacy and a dedicated community.
5. Stay up to date with the latest news and rumors about Palantir (PLTR)
Get the latest Palantir Inc. (PLTR) stock news and headlines to help you in your trading and investing decisions.
History of Palantir
Despite being claimed as having been formed in 2004, SEC documents show that Palantir was officially incorporated in May 2003 by Peter Thiel (co-founder of PayPal), who named the company after Tolkien's legendarium's "seeing stone." Thiel regarded Palantir as a "mission-oriented firm" that might "prevent terrorism while safeguarding civil liberties" by using software comparable to PayPal's fraud detecting systems.
Palantir's technology was created over three years by computer scientists and analysts from intelligence agencies, with pilots facilitated by In-Q-Tel. According to the business, machines using artificial intelligence alone would not be able to overcome an adaptive foe. Palantir proposed using human analysts to investigate data from a variety of sources, a process known as intelligence augmentation.
Information Warfare Monitor used Palantir software to uncover the GhostNet and the Shadow Network in 2009 and 2010, respectively. The GhostNet was a cyber espionage network located in China that targeted 1,295 computers in 103 countries, including the Dalai Lama's office, a NATO computer, and a number of national embassies. The Shadow Network was a Chinese espionage group that hacked into India's security and military systems. Documents relating to Indian security and NATO force action in Afghanistan were stolen by cyber espionage.
Palantir and Thomson Reuters announced cooperation in April 2010 to commercialize the Palantir Metropolis product as "QA Studio" (a quantitative analysis tool). On June 18, 2010, Vice President Joe Biden and Office of Management and Budget Director Peter Orszag held a press conference at the White House to announce the Recovery Accountability and Transparency Board's effectiveness in combating stimulus fraud (RATB). Biden attributed the success to the federal government's use of Palantir software.
Palantir declared approximately $196 million in fundraising in September 2013, according to a Securities and Exchange Commission filing. In 2014, it was predicted that the corporation would close about $1 billion in contracts. In 2013, CEO Alex Karp declared that the business would not pursue an IPO because "operating a company like ours would be very tough" if it did. The startup began a round of funding in December 2013, raising roughly $450 million from private investors. According to Forbes, this increased Palantir's value to $9 billion, making it "among Silicon Valley's most valued private technology companies."
After filing paperwork with the Securities and Exchange Commission the month before, Forbes reported in December 2014 that Palantir was aiming to raise $400 million in a new round of funding.
In November 2014, the corporation was valued at $15 billion. Buzzfeed said in June 2015 that it was raising up to $500 million in new funding at a valuation of $20 billion. It had raised another $880 million by December 2015, although the company was still valued at $20 billion.
Palantir is one of four major technology companies that has begun cooperating with the NHS to support COVID-19 initiatives through the use of Palantir Foundry software, and by April 2020, multiple countries will have employed Palantir technology to track and contain the virus. Palantir also created Tiberius, a vaccination allocation program that is utilized in the United States.
Palantir was given a $44.4 million contract by the US Food and Drug Administration in December 2020, raising its stock by around 21%.
*Last Update: December 2021. Source: Wikipedia