Palantir Was One of My Best Trades. Time to Get Back In?
Let’s check the chart, and some promising news, and see if Palantir is ready to roar as it approaches earnings.
You've reached your free article limit
You've read 0 of 1 free Pro articles.
Yes, I sold shares of Palantir Technologies (PLTR) close to the lows for the $10K Portfolio.
My colleague at TheStreet Pro, Chris Versace, to his credit, added to his long position in the name that very day, so maybe you should be reading him on this name. Credit goes where credit is due. That said, my track record on PLTR stands for itself. I still have an opinion and like many of you, I do not eat unless I create capital, so try to create I must. I haven’t been paid a penny by an employer in over a decade. The never-ending story goes on.
Palantir will report in about four weeks’ time. Wall Street is looking for an adjusted earnings per share of $0.35 on revenue of about $1.81 billion. If those numbers hit the tape precisely, that would be good for earnings growth of 119% on revenue growth of 80%. Not too shabby. Even better, of the 23 sell-side analysts that I know of who cover PLTR, 20 have increased their earnings estimates since the start of the quarter to be reported while exactly zero have reduced those estimates.
For the full year, the consensus is still for earnings growth of 97% on revenue growth of 73%. Again, not bad. Growth like this, despite the valuation, pardon the pun, does not grow on trees for large-cap companies. Readers should be aware that this (Tuesday) morning, Bank of America’s Mariana Perez Mora reiterated her “Buy” rating on PLTR. She did not set a target price and has not for a while.
Just FYI, during Palantir’s two-year bull run to glory, when I was Wall Street’s “PLTR guy,” Mariana was the only analyst on the sell-side that even came semi-close to my performance in the name. That’s not boastful. I had a run, over those two years (+1,938%) and bottom-to-top (+2,875%), that I do not think I nor anyone else on Wall Street can ever repeat. You readers were here for the whole thing.
Some Mexican Insurance
On Tuesday morning, Palantir Technologies announced an enterprise expansion agreement with GNP Seguros, which is a Mexican insurance company. GNP Seguros will now become Palantir’s first publicly announced commercial customer in Latin America. Palantir’s platforms will help GNP Seguros improve customer service, assist the judgment of claims and underwriting parts of the business. Palantir will also provide a scalable, secure, and governed foundation for the use of its AI platforms by insurers. GNP Seguros had already used Palantir’s Foundry and Artificial Intelligence Platform (AIP) in targeted deployments to detect fraud and monitor risk.
The Technical Case
There is now a potentially strong technical case to be made for the PLTR bulls. Check this out:
Readers will see that PLTR had developed a Falling Wedge that lasted from late 2026 really into late May. This is a pattern of bullish reversal. We see that then is when an attempt was made to break out of that set-up and that this attempt ultimately failed. The bright side of that failure is this. That aborted breakout ended up becoming the first leg of what I now see as potentially what is now about two-thirds of an inverse head & shoulders pattern. This would also be a bullish set up. I have drawn my idea of what could be the right shoulder of the pattern should the stock fail in the present at its 50-day simple moving average. That brings me to my next point.
PLTR is trying, this very morning, to break through resistance at its 50-day simple moving average (blue line). Should the stock crack that line and hold the level, then forget the inverse head & shoulders, portfolio managers would be forced to adjust allocation weightings on the fly in preparation for a run at the 200-day SMA. That would be the next line in the sand (pivot). Relative strength has suddenly improved as has the posture of the stock’s daily moving average convergence divergence.
The fight at the 50-day line is crucial. Either I re-initiate PLTR on a take and hold of the line that now stands at $134, or I re-initiate on the temporary retreat from that line as the right shoulder of our pattern fills out. There is, for me, no not re-initiating. Prepare for re-entry.
At the time of publication, Guilfoyle had no position in any security mentioned.
