Symbols

At $119 is PLTR a buy, sell, or hold? Is it currently oversold?

6/6/2025 11:04am

``` The deep research logic is organized as follows: Okay, let's tackle this question about Palantir (PLTR) at $119. The user is asking if it's a buy, sell, or hold, and whether it's currently oversold. First, I need to check the provided references and background to gather all relevant data. Starting with the beta coefficient from Reference 1, PLTR has a beta of 0.92, which is slightly below 1. That means it's less volatile than the market, which is a good point for risk-averse investors. But the user is interested in the current price of $119, so I need to look at recent price movements and technical indicators. Looking at the stock price history, Reference 2 mentions that PLTR hit $119.16 on Feb 15, 2025, up 42% from the earnings release. However, the latest price from Reference 1 is $119.91 as of June 5, 2025, with a drop of 7.77%. That's a significant decline, so the user is asking about the current situation after this drop. Next, the technical analysis. Reference 3 and 4 discuss RSI and MACD. Reference 3 mentions an RSI of 55 on May 29, which is neutral. But Reference 4 from May 15 shows an RSI of 70, indicating overbought conditions. However, the latest data from Reference 31 (Query: PLTR support/resistance) shows the last price at $119.91 with a support level at $118.93. The trading volume on June 5 was 132.24 million shares, which is high but not necessarily a sign of panic selling. The user is interested in whether PLTR is oversold. Oversold conditions typically occur when RSI is below 30. From the references, the RSI hasn't dropped that low. The closest is Reference 18 from 2024, where RSI was 29.3, but that's outdated. The latest RSI mentioned in Reference 3 is 55, which is neutral. So, PLTR isn't oversold based on current data. Looking at the fundamental factors, PLTR has high revenue growth (36% YoY in Q4 2024) and strong cash flow. However, the valuation metrics are concerning. The P/E ratio is 531.83 (Reference 3), which is extremely high. The forward P/S ratio exceeds 55 (Reference 2), which is historically high for software stocks. Analysts have mixed sentiment, with some revising price targets up but others cautioning about overvaluation (References 2, 3, 4, 6, 9, 12, 13, 14, 15, 16, 17, 18, 19, 20, 21, 22, 23, 24, 25, 26, 27, 28, 29, 30, 31). The user's profile shows interest in technical analysis and institutional views. The stock has a beta of 0.92, so it's less volatile than the market. The support level at $118.93 is close to the current price, which might indicate a potential buying opportunity if the price holds. However, the high valuation and mixed analyst targets suggest caution. Putting it all together, PLTR isn't oversold based on RSI. The stock is trading near its support level, but the high valuation and mixed analyst sentiment make it a hold. The user should consider the high growth potential against the risk of overvaluation. The conclusion is to hold, with a cautious outlook. ``` ### **Conclusion** **Hold** Palantir (PLTR) at $119. The stock is not oversold based on current technical indicators, but it faces mixed signals from high valuation risks and strong growth fundamentals. Here’s the breakdown: --- ### **Analysis** #### 1. **Current Price Context** - **Last Price**: $119.91 (as of 2025-06-05) . - **Recent Performance**: Down 7.77% from the previous day, with trading volume surging to **132.24 million shares** . - **Support/Resistance**: | Level | Price | Implication | |-------------|---------|---------------------------------------| | Support | $118.93 | Near-term price floor . | | Resistance | $132.85 | Key upside target . | #### 2. **Oversold Confirmation?** - **RSI**: 55 (neutral, not oversold) . - **MACD**: Positive but slowing (8.13) . - **Volume**: High (132.24M shares), but no panic selling signals . **Conclusion**: Not oversold. Current price reflects short-term profit-taking after a 74% YTD rally . --- #### 3. **Fundamental Risks** | Metric | Value | Concerns | |------------------------|----------------|------------------------------------| | P/E Ratio | 531.83 | Extremely high . | | P/S Ratio | >55 | Historically high for software . | | Analyst Price Targets | $84.69 (avg) | Current price ($119.91) > targets . | | Debt-to-Equity | 0.15 | Low leverage, but cash reserves matter . | #### 4. **Growth Catalysts** - **Government Contracts**: 42% YoY growth in gov’t revenue . - **AI Expansion**: Partnerships with Bolt Financial and TeleTracking . - **Market Position**: 2nd-best S&P 500 performer (74% YTD) . --- #### 5. **Risks to Watch** - **Regulatory Scrutiny**: Privacy concerns over gov’t data sharing . - **Competition**: AI giants like Anthropic (backed by Amazon) . - **Valuation Pressure**: P/E >500 vs. historical norms . --- ### **Final Take** **Hold** PLTR at $119. The stock isn’t oversold, but it’s trading near critical support levels with mixed upside/downside risks. Long-term growth potential in AI and gov’t contracts offsets high valuation concerns. Monitor closely for price action around $118.93 (support) and $132.85 (resistance). |code|Ticker|Name|Date|Beta|market_code| |---|---|---|---|---|---| |PLTR|PLTR.O|Palantir|20241126|2.7|185| |PLTR|PLTR.O|Palantir|20241127|2.7|185| |PLTR|PLTR.O|Palantir|20241129|2.7|185| |PLTR|PLTR.O|Palantir|20241202|2.7|185| |PLTR|PLTR.O|Palantir|20241203|2.7|185| |PLTR|PLTR.O|Palantir|20241204|2.7|185| |PLTR|PLTR.O|Palantir|20241205|2.7|185| |PLTR|PLTR.O|Palantir|20241206|2.7|185| |PLTR|PLTR.O|Palantir|20241209|2.7|185| |PLTR|PLTR.O|Palantir|20241210|2.7|185|