AI's Insight from News Cross-Checked with Pattern Recognition 👁Dear Investors, I believe that PLTR might fall to $13.2 in the coming months. Here, I made a short idea from the insights of the different AI algorithms I use for speculative analytics.
News Analytics - Natural Language Processing
1 Palantir's revenue growth has slowed in recent quarters. The company's revenue grew by 31% year-over-year in the first quarter of 2023, but this was down from 54% growth in the fourth quarter of 2022. This slowdown in revenue growth could be a sign that Palantir is facing challenges in the market.
2 Palantir's gross margin has been declining. The company's gross margin was 74% in the first quarter of 2023, down from 77% in the fourth quarter of 2022. This decline in gross margin could be a sign that Palantir is having to invest more in sales and marketing to drive revenue growth.
3 Palantir has been losing market share. The company's market share in the data analytics market is estimated to be around 1%, according to Gartner. This is a very small market share, and it has been shrinking in recent years. This could be a sign that Palantir is not as competitive as its rivals.
4 Palantir's stock price has been volatile in recent months. The stock price has fallen by more than 50% from its all-time high in August 2021. This volatility could be a sign that investors are uncertain about Palantir's future.
Cross-Checking Logic
Of course, there are also some positive news about Palantir that could suggest that the stock price will not fall to $13.2. For example, the company has a strong pipeline of new business opportunities. Palantir is also investing heavily in research and development, which could lead to new products and services that could boost the company's growth.
Chart Pattern Recognition - Deep Neural Networks
Between the two red trendlines, my neural networks believe to be a bearish channel. Your human eyes can see how Palantir rejected the upper trendline on 11 October and 21 November. I marked these price points with red ellipses. The channel had some bullish aspects when the bottom trendline acted as a support on 02 November and possibly today. Look at the left green arrow. Palantir's last rally related to this point. Today, the stock is near the same trendline again, and there's a chance that it can reignite a similar rally. The white arrow shows this possible scenario. I, however, feel skeptical that history would repeat itself.
Ensembling Technical Indicators
I asked different AIs to weigh technical indicators to represent their opinions. I ensembled the results of these AI opinions and selected MACD, RSI, and volume to simulate AI's insights in a way you can reproduce on your chart without AI. From declining volume bars I suspect the continuation of the bearish trend. The price action has been bearish over the last week, and I can't see the volume to reverse it. I can see extreme sell volumes every now and then, but they seemed to escalate the bearish trend. I don't see where the orders are that could absorb the end of the bearish trend. RSI tried to make a bullish cross below the volume indicator, but it happened to be a failed cross. RSI reversed as it crossed the SMA, which suggests a lack of bullish momentum. The potential bullish signal turned out to be an indication of how weak bulls are. At the same time, MACD has been going on the bearish side with a strong momentum, and periodically pulsing bearish momentum without signs of weakening. Overall, these indicators simulate what my AI bots believe about the market. Their ensembled opinion seems to be a bearish continuation.
Chart Explanation
I already explained the red bearish channel, the channel contacts, the indicators, and a potential bullish scenario, but I think bears enjoy a better risk-reward ratio. Theoretically, channel breakdown could pull the price into the support level of 13.2. I've got a green line at this level. Thus, the target price of a short could be within the green box around this level where the bearish trajectory's red arrow shows. The stock might reverse or not at this level. I'll have to reassess if I see the playout of my bearish expectation.
Conclusion
Ultimately, the direction of Palantir's stock price will depend on a variety of factors, including the company's financial performance, the overall market conditions, and investor sentiment. It is always important to do your own research and consult with a financial advisor before making any trading decisions.
Kind regards,
Ely
