Shares of Palantir (NYSE:PLTR) are in focus on Tuesday as the bulls continue to look for catalysts. PLTR stock is currently up about 1% in afternoon trading but has been riding quite the hot streak.
The stock is working on its fifth straight weekly gain and has gained more than 100% since reporting earnings on May 8.
In fact, the rally was enough to send shares to 52-week highs. That came as PLTR stock hit $15.70 on Monday, June 5. Many investors may assume that since shares doubled in less than a month that they would likely be at new 52-week highs. However, for a stock that fell more than 86% from its high, that shouldn’t necessarily be the assumption. In any regard, this price action is welcomed by many.
Well, “welcomed by many,” with the exception of short-sellers.
For now, Palantir does not seem to be a heavy favorite among short sellers, with the short float sitting at less than 10%. However, that figure has risen to its highest point since February.
The company’s improving fundamentals have combined with market-wide momentum to boost PLTR stock significantly. Can it continue?
AI and Earnings Lift PLTR Stock
Palantir reported earnings on May 8, and the stock responded with a 23% rally a day later. That’s after the company delivered a top- and bottom-line beat as sales grew almost 18% year-over-year.
While revenue guidance for next quarter was short of expectations, the midpoint of management’s full-year outlook topped consensus estimates. Management also said it expects GAAP net income in each quarter to round out the year (Q2 through Q4).
That was enough for investors, who have continued to bid this name higher. Clearly, other trends have helped pave the way too. Nvidia’s (NASDAQ:NVDA) robust artificial intelligence (AI) inspired rally has given a huge boost to AI stocks in recent weeks.
Among the winners, PLTR stock seems to be riding this new wave of momentum.
It helps that the company announced a strategic relationship with Amazon (NASDAQ:AMZN) and signed a $463 million multi-year contract with the United States Special Operations Command (USSOCOM).
The company’s been pushing its Artificial Intelligence Platform (or AIP). It’s aimed at business and defense, and its AIP Assist allows customers to “build everything from pipelines to applications faster, with human-AI collaboration.”
With Palantir looking to ride the AI wave and delivering above-consensus results, it’s hard to fight the trend in PLTR stock.
On the date of publication, Bret Kenwell did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
