Palantir Technologies Inc. (NASDAQ) stock surged Thursday as the company expanded its PwC partnership and investors returned to the stock after Wednesday’s pullback.
The stock had fallen after Alphabet Inc. (NASDAQ) Google entered the AI defense market, raising concerns about increased competition.
Palantir Expands PwC AI Partnership
On Thursday, Palantir expanded its strategic alliance with PwC US to help companies scale enterprise AI. The partnership will focus on M&A transformation and enterprise resource planning modernization.
The expanded alliance combines Palantir’s AI and data platforms with PwC’s industry, engineering and business transformation expertise.
The companies plan to embed AI deeper into businesses. Areas of focus include data migrations, agentic workforce solutions, technology integrations and separations. PwC is also expanding its technical and functional talent in these areas.
Technical Analysis
Palantir remains above several major trend indicators.
The stock is 3.6% above its 20-day simple moving average of $176.83. It is also 21.1% above its 200-day SMA of $151.36.
The 20-day SMA remains above the 50-day SMA, supporting the shorter-term bullish trend.
However, momentum signals are mixed. The moving average convergence divergence indicator is below its signal line, while the histogram remains negative. That suggests momentum has cooled despite Thursday’s rally.
The 50-day SMA of $148.56 also remains below the 200-day SMA of $151.36 following February’s death cross.
Near-term resistance sits around $187.50. The stock’s 52-week high is $207.52.
Support is near $171, close to the 20-day exponential moving average of $172.45.
Analyst Outlook
Palantir stock trades at a price-to-earnings multiple of about 144.8, reflecting a premium valuation. Palantir carries a Buy consensus rating with an average price forecast of $196.31.
UBS raised its price forecast to $220 from $180 on Aug. 4 and maintained a Buy rating. Mizuho raised its forecast to $215 and maintained an Outperform rating. Citigroup maintained a Buy rating and raised its forecast to $245.
Benzinga Edge Rankings
Benzinga Edge rankings highlight Palantir’s strong growth profile and momentum, but also its elevated valuation.
Palantir has a Momentum score of 70.26 and a Growth score of 97.03. Its Value score stands at just 1.84.
The combination reflects a high-growth stock with strong relative momentum but a stretched valuation. That premium could leave shares more sensitive to changes in growth expectations or market sentiment.
ETF Exposure
Palantir is a major holding in several exchange-traded funds.
The iShares Expanded Tech-Software Sector ETF (BATS:IGV) has a 9.34% weighting in the stock. The Global X Defense Tech ETF (NYSE:SHLD) has a 9.17% weighting, while the First Trust Indxx Aerospace & Defense ETF (NYSE:MISL) has a 9.67% weighting.
The large allocations mean flows into or out of these ETFs can add to buying or selling pressure in Palantir shares.
PLTR Price Action
PLTR Price Action: Palantir shares were up 7.85% at $182.77 at the time of publication Thursday, according to Benzinga Pro data.
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