Palantir Technologies (PLTR) Soars After Steve Cohen’s Point72 Snaps Acquires Shares

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The market cap of Palantir is spiking graduallyas the bullish run continues after its IPO about one month ago.

Palantir Technologies (PLTR) traded in aquivery after it went public on Sep. 30, 2020, but started to pull off after it confirmed new federal deals and secured strong growth.

The bullish momentum continues for the U.S. software newbie. The company recorded strong outcomes during its first earnings result. PLTR soared up to 60% following strong financial performance and raised future outlook.

The revenue for the full year 2020 is projected to be between $1.07 billion to $1.072 billion, almost 44% from the prior year.

On Tuesday, PLTR soared 18% in the intraday trading taking the tally to +150% since Sep 30.

Today, the stock surged up to 10% in the premarket, before it kicked off the session at $18.28 up from the prior close of $17.85. PLTR is currently trading in its highest range since its IPO. The trading volume is also up the ranks with 50 million so far today.

As we write this at 10:54 A.M. EDT, PLTR was trading at $19.11 soaring by 6.90%.

The recent spike took the stock to a new high after Steve Cohen’s hedge fund and certain other sources revealed that they have bought shares of PLTR.

According to a 13F filing, Point72 Asset Management LP acquired around 29.9 million of the data-mining firm during Q3. In addition, Anchorage Capital Group purchased 2.95 million shares., and the Soros Fund holds a 1% stake in PLTR’s Class A shares.

Palantir reports having made some major deals with the National Institute of Health (NIH) and the U.S. Army. One of the main reasons behind PLTR’s push remains to be the new federal procurement procedures. This seems to be quite handy for the company as they support “commercially available” solutions versus in-house development. This will help Palantir to expand its Army revenue in the future.

The Chief Financial Officer of Palantir, Dave Glazerduring Q3 earnings call said:

“In the third quarter, we closed 15 deals of $5 million or more in total contract value, including 8 deals in excess of $10 million. Top line growth was driven by strong performance across each of our business segments.”

The company renewed a $300 million agreement with one of its aerospace customers. The renewed agreement will last for a five-year period which shows that big industries are trusting the software newbie.

For the investors, it’s a tricky situation to decide on PLTR. However, most of the Wall Street analysts’ rates this as a hold for now. One of the analysts from Jefferies rates the stock as a buy with a price target of $18.

At the moment, Palantir Technologies (PLTR) shares do not seem to hold off. Investors can cash in when the stock drops its price. The stock is expected to return near its IPO price of $10. In that case, it would mark a safe buy for the investors.

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