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Re: gfp927z post# 90

Wednesday, 09/11/2024 6:12:04 PM

Wednesday, September 11, 2024 6:12:04 PM

Post# of 140
>>> Palantir’s Addition to the S&P 500 Is ‘Validation’ for Stock. So Is This Deal.


Barron's

by Emily Dattilo

Sept 09, 2024


https://www.barrons.com/articles/palantir-stock-price-s-and-p-500-0dffec41?siteid=yhoof2


Palantir Technologies stock divides opinion on Wall Street, but its promotion to the S&P 500 has given the bulls ammunition.

After markets closed Friday, S&P Dow Jones Indices announced that Palantir would replace American Airlines, Dell Technologies would replace Etsy, and Erie Indemnity would replace Bio-Rad Laboratories in the index before the start of trading on Sept. 23.

Being added to the S&P 500 is a heavier lift than the Russell 1000, which relies mostly on large market capitalization. To join the S&P 500, companies need to be profitable under generally accepted accounting principles for four quarters based on the sum of their profits over that span—as well as being GAAP profitable in the most recent quarter— Barron’s Associate Editor Andrew Bary wrote in June, musing that Palantir could be a likely candidate.

Wall Street has been divided on the software and data-integration company, with bulls championing the company’s AI platform and its ability to drive profits higher as demand soars and bears wondering if the stock is overvalued.

Wedbush analyst Dan Ives, who rates Palantir at Outperform with a price target of $38, called the S&P 500 addition a “validation moment.”

“We believe this is the start of a multi-year cycle for PLTR to continue generating significant deal flow on the back of AIP [artificial intelligence platform] as more organizations look to add AI capabilities that provide value and innovation in real time across operations that are unique to each enterprise,” he wrote.

A prime example of this is Palantir and oil giant BP announcing on Monday a five-year enterprise agreement that will extend their strategic relationship and introduce new AI capabilities.

“Palantir’s AIP software will assist bp to safely and reliably harness large language models (LLMs) to improve and accelerate human decision-making with suggested courses of action based on automated analysis of the underlying data,” the company said in a press release.

Palantir shares gained 9.8% to $33.30, putting them on track for their highest close in more than three years, according to Dow Jones Market Data.

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