Shares of AI Service company Palantir (PLTR) jumped more than 5% on Tuesday to close at new all-time highs. The software company primarily serves the intelligence community, military, and government along with larger private sector companies.
Last week, Palantir switched exchanges to the NASDAQ from the New York Stock Exchange (NYSE) to the NASDAQ. The move was announced weeks ago following the company’s latest earnings report in early November.
For its most recent quarter, Palantir beat analyst expectations for both revenue and earnings per share. The company grew quarterly revenue by more than 30% compared to the same period in 2023.
Palantir’s move to the NASDAQ now fuels speculation that the company’s stock will be added to the Nasdaq 100 Index.
This speculation is driven by the company's significant market cap and the shift to a stock exchange that often includes high-growth technology companies.
The Nasdaq 100 is comprised of the 100 largest non-financial companies listed on the NASDAQ exchange. At its current market capitalization, Palantir ranks as the 23 largest technology company listed on the exchange.
There has been no announcement of the company’s addition to the Nasdaq 100 Index, but the move to NASDAQ certainly positions Palantir favorably for potential inclusion in the Nasdaq 100 Index, which could further enhance its visibility and attract additional investor interest.
Palantir stock has been trading at the top of its range near all-time highs since Early November.
From a short-term perspective, shares have been trading in an overbought situation according to the stock’s RSI indicator.
Normally, a stock will make a “healthy correction” from similar overbought readings, but speculation on the stock’s inclusion in the Nasdaq 100 continues to attract buyers even at these lofty prices.
Investors should expect that some selling pressure will come in the form of short-term profit-taking before year-end. However, any weakness in Palantir will certainly be met with additional buyers as long-term investors are likely to be waiting for an opportunity to buy Palantir stock on a dip.
Palantir shares maintain a long-term bullish rating with a price target of $100.
