The price of Palantir shares have been struggling after the recent third quarter earnings release disappointed Wall Street.
In the recent quarter, Palantir added 34 new customers and closed 54 deals worth $1 million or more. The company said that 18 of those deals were valued at $10 million or more. Palantir grew its revenue by 36% year-over-year to $392 million. The shares are still heavily valued at 29 times price-to-sales, but that includes a growth company premium.
PLTR has grown its deal value 50% to $3.6 billion and the Chief Operating Officer Shyam Sankar has pinned the success of the firm on three areas. First, the company is increasing its footprint with defense industrial customers. Second, additional uptake is being seen in automotive clients. Third, is a growing base in healthcare.
The company’s Chief Executive Officer Alex Karp has said he expects the company will have annual revenue growth of 30% or more from 2021 through 2025. Despite this, the shares have been hurt by executive selling and that will need to slow for earnings improvements to take hold.
Palantir Price Analysis
The price of Palantir has been on a two-week slump with a top above $26.00 and the stock now trades at $21.50. Initial support is at $20.00 with the lows of May being around $17.00. The resistance overhead is at $29.00 and $35.00.