Palantir Stock is Showing a Disturbing Trend That Investors Shouldn't Ignore

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Palantir Technologies (NASDAQ: PLTR) has scored a location tally for investors arsenic the artificial quality (AI) gyration picked up momentum. The company, acknowledgment to its Artificial Intelligence Platform (AIP), allows customers to use AI to their needs -- request for the strategy has been precocious and has translated into beardown gross growth. And this has powered the banal higher, with shares advancing 2,200% successful 3 years.

So, investors person gotten utilized to coagulated net reports from Palantir and fantastic banal terms performance. And now, with the company's adjacent net study acceptable for Feb. 2, each eyes are connected Palantir.

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What's adjacent for Palantir stock? Before answering that question, let's see the following: Palantir's banal is showing a disturbing inclination that investors shouldn't ignore.

An capitalist  looks pensively astatine  a laptop successful  an office.

Image source: Getty Images.

Before considering this trend, though, first, a speedy summary of however and wherefore Palantir has go truthful successful. Palantir isn't caller to the country -- it's much than 20 years aged -- though it launched an archetypal nationalist offering conscionable a fewer years ago. In Palantir's aboriginal days, it chiefly served governments with its bundle that helped them organize, analyze, and marque usage of their data.

But today, Palantir boasts thriving authorities and commercialized businesses. In fact, the commercialized lawsuit whitethorn beryllium seen arsenic the company's imaginable gross operator of the future, and this is acknowledgment to AIP. Commercial customers person rushed to get successful connected this instrumentality that allows them to easy use AI to their problems -- and make game-changing solutions. Quarter aft quarter, Palantir has spoken of soaring request for AIP, and the institution has expertly balanced maturation and profitability.

As mentioned, this has led to gains successful the banal price. Now, let's see the disturbing inclination that has emerged successful caller quarters. Though Palantir banal has gained much often than it's slipped successful the 2 weeks and the six months pursuing the company's quarterly net reports implicit the past respective quarters, here's the disturbing trend: The gait of gains has greatly slowed, arsenic shown successful the illustration below. (I didn't see the past 2 quarters since six months haven't yet elapsed since the net study dates.)

Quarter

Stock show 2 weeks station earnings

Stock show six months station earnings

Q1 2024

down 14%

up 120%

Q2 2024

up 34%

up 320%

Q3 2024

up 47%

up 200%

Q4 2024

up 42%

up 84%

Q1 2025

up 2%

up 51%

Data source: Ycharts

So, what does this mean for investors? This inclination suggests that the tremendous gains Palantir delivered successful the past whitethorn so beryllium a happening of the past -- astatine slightest for now. In caller times, investors person zeroed successful connected valuations of AI stocks, which person reached precocious levels, and Palantir's has been a constituent of focus. Though it's travel down successful caller times, the banal inactive is considered to beryllium rather expensive.

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