There’s plenty for bulls and bears to hash out over Palantir Technologies (PLTR), a maker of data analytics software, amid the company’s premium valuation. From a technical view, Palantir stock has dipped below a key trading metric following a failed break-out. When Palantir reports third quarter earnings in early November, its solid fundamental outlook will get a refresh heading into 2026.
As of the market open on Oct. 13, Palantir stock has gained 131% in 2025. And, PLTR stock has out-performed most software companies. The iShares Expanded Tech-Software Sector ETF (IGV), an industry index that includes many big-cap software companies such as Microsoft (MSFT), has advanced 12% this year.
Meanwhile, Palantir stock has clawed back to near its all-time high of 190 set on Aug. 12. Palantir briefly cleared an early 185.75 entry point last week but then dipped below its 21-day exponential average. In the exponential moving average, the most recent price action carries a higher weighting.
PLTR stock still trades above its 50-day moving average, another key technical level. The 50-day line can signal whether institutional investors are moving in or out of a top performing stock.
Palantir third quarter earnings are due around Nov. 3. Over the last four quarters, sales accelerated 30%, 36%, 39% and 48%. In Q3 2025, Wall Street analysts model revenue growth of over 50% to $1.092 billion.
Palantir Stock: Outspoken CEO
Here’s what investors need to know about the data analytics software maker and its chief executive, Alex Karp.
Palantir’s roots are in predictive-based artificial intelligence, mainly using pattern recognition tools. It’s now upgrading products to generative AI, which relies on advanced reasoning models and provides novel outputs based on conversational user prompts.
Since its founding, Palantir has provided data analytics tools to government customers for intelligence gathering, surveillance, counterterrorism and military purposes. Now Palantir aims to use generative AI to spur growth in the U.S. commercial market, such as health care and financial services.
Generally, Palantir stock has gained amid views that the company seems poised to win more U.S. government business during the Trump administration.
Palantir recently hosted its eighth artificial conference for customers. Further, Palantir initially rolled out its “Artificial Intelligence Platform” in early 2023. AIPCon is the company’s flagship marketing event showcasing real-world AI use cases.
Here’s a look at Palantir’s go-to-market strategy in artificial intelligence. Further, Palantir is among AI stocks to watch.
OpenAI, Salesforce A Threat To Palantir?
Some bearish investors worry about rising competition for Palantir from OpenAI, the leader in developing generative AI models. With its new Missionforce unit, Salesforce (CRM) is another new rival in the defense market.
Further, strong revenue growth in the software maker’s U.S. government and commercial businesses boosted second quarter financial results for Palantir stock.
The IBD Methodology: How To Invest In Stocks While Managing Risks
Several members of the Trump administration have ties to Palantir, a company co-founded by longtime venture capitalist Peter Thiel. They include David Sacks, tapped as White House artificial intelligence and crypto czar.
Meanwhile, Palantir seems well-positioned for the Trump administration’s plans for a “Golden Dome” air and missile defense shield that can protect the U.S. from long-range strikes. But it faces Golden Dome competition from Lockheed Martin (LMT).
Palantir Stock Technical Ratings
Further, Palantir stock advanced 340% in 2024, with much of the gain coming after Donald Trump’s Presidential election win.
From a technical view, Palantir stock has forged a cup-with-handle base. There’s an entry point of 185.75, according to IBD MarketSurge.
PLTR stock holds an Accumulation/Distribution Rating of B-minus. The rating analyzes price and volume changes in a stock over the past 13 weeks of trading. A+ signifies heavy institutional buying; E means heavy selling. Think of a C grade as neutral.
Meanwhile, PLTR stock has a 21-day ATR of 4.15. The average true range is a metric available on IBD’s MarketSurge that gauges the characteristic breadth of a stock’s behavior. Stocks that tend to make large jumps or dives in daily action, the kind that can trigger sell rules and shake investors out of a stock, have a high ATR. Stocks that tend to make more incremental moves have lower ATRs.
IBD suggests stocks with ATRs of up to 8%.
Follow Reinhardt Krause on X, formerly Twitter, @reinhardtk_tech for updates on artificial intelligence, cybersecurity, quantum computing and cloud computing.
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