Palantir Technologies Inc. (NASDAQ:PLTR) stock fell more than 7% on Friday, pulling back after a strong multimonth rally that recently brought the stock close to its all-time highs.
Cramer Sees Palantir Stock Reaching $250
CNBC’s Jim Cramer remains bullish on the software company, citing its unique business model, ability to transform large organizations and long-term growth potential.
Last week, Cramer said he has been a “long-time believer” in Palantir. He reiterated his view that the stock could reach $250, despite resistance near $208.
Cramer also highlighted a recent Goldman Sachs upgrade to Buy.
He said Goldman’s research offered valuable insight into Palantir’s business model and what sets it apart from traditional software companies.
“If you read the Goldman piece, you’re going to say, ‘You know what? This is a very rigorous, great growth company, and it’s changing the enterprises that it puts into,’” Cramer said.
What Makes Palantir Different?
Cramer identified Palantir’s forward-deployed engineers as a major competitive advantage.
Unlike traditional software companies, Palantir places engineers directly with customers to develop technology solutions for complex business and operational challenges.
Cramer said the company uses computer code to solve broader organizational problems, helping large businesses and government agencies improve efficiency.
He also praised CEO Alex Karp and his team, saying investors who understand Palantir’s approach may better appreciate “how important it is and how smart Alex Karp is and his team.”
For Cramer, Palantir’s ability to integrate its technology into customer operations remains a key driver of its long-term growth potential.
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Palantir Faces Potential Congressional Scrutiny
Meanwhile, Palantir has expanded its lobbying presence following a sharp increase in federal contracts over the past two years.
The company has added bipartisan lobbying firms and Democratic Party veterans to its roster of outside advisers.
Palantir also appeared on a list of potential congressional investigation targets compiled by Groundwork Collaborative.
The development comes as some Democratic lawmakers prepare for possible investigations into technology companies’ relationships with the Trump administration.
Technical Analysis
Palantir remains in a long-term uptrend despite Friday’s sharp decline.
The stock trades 22.4% above its 200-day simple moving average (SMA) of $152.65 and 18.8% above its 100-day SMA of $157.20.
The broader bullish trend also remains intact following a golden cross in September, when the 50-day SMA moved above the 200-day SMA.
However, short-term momentum has weakened.
Palantir trades 3.5% below its 20-day SMA of $193.59 but remains 2.3% above its 50-day SMA of $182.58.
The relative strength index (RSI) stands at 47.02, signaling neutral momentum after the stock retreated from overbought conditions earlier in October.
Traders are watching resistance near $188.50, while $164.50 represents a key support level if selling pressure intensifies.
PLTR Price Action: Palantir Technologies shares were down 7.05% at $186.36 at the time of publication on Friday, according to Benzinga Pro data.
Image via Shutterstock
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