PLTR :Is there a bubble behind the meteoric rise of PLTR stock?The recent surge in PLTR stock is partially attributed to Nvidia's (NVDA) historic quarterly earnings. Nvidia's revenue forecast for the second quarter is $11 billion, far exceeding analyst expectations of $7.15 billion. This positive news also boosted the stocks of other companies involved in artificial intelligence (AI) and machine learning (ML), including PLTR.
Recently, Palantir announced a partnership with the Ministry of Digital Transformation in Ukraine. Through this collaboration, Palantir will assist Ukraine in rebuilding its digital infrastructure, which was damaged during the Russian invasion. The services will include enhancing the efficiency of electronic public services and collaborating with the Armed Forces of Ukraine to implement digital and innovative projects.
However, I've also noticed that Palantir faces potential competition from data platforms developed by the U.S. government, concerns about its investments in SPAC-backed startups, and the launch of its Apollo platform, which may face competition from other cloud-based software update platforms. Amid the push of the AI wave, technology suite companies are also experiencing a pullback, but there is a certain bubble in this.
From a technical perspective, as you've mentioned, there are signs of overbuying risk, so chasing the bull trend right now isn't advisable. I would suggest remaining on the sidelines as the current price isn't a good entry point. The first resistance level above is around 18, with a short-term resistance level at 15.63, which is the weekly high.
If you already hold this stock, you could continue to wait for a sprint to the first resistance level above and use it as your first profit target.