2024 has been a milestone yr for knowledge analytics firm Palantir Applied sciences(NYSE: PLTR). Maybe most necessary occasion for the corporate was its addition to the S&P 500 earlier this yr — an achievement few thought was doable simply 4 years in the past when Palantir went public and was shortly written off as a glorified authorities contracting and consulting operation with no actual expertise capabilities.
That narrative has come to an finish. During the last couple of years, Palantir has entered a brand new section of progress due to the corporate’s profitable launch of a brand new software program suite known as the Synthetic Intelligence Platform (AIP).
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All of those elements have contributed to notable curiosity in Palantir inventory during the last a number of months. On the time of this writing, shares of Palantir have gained 283% yr up to now. With the inventory hovering round an all-time excessive valuation, can it presumably maintain climbing increased?
In my eyes, I believe Palantir inventory is ready to proceed working. Under, I am going to break down the corporate’s newest announcement and level to why traders ought to have their eyes on Palantir inventory on Nov. 26.
One factor that usually goes neglected with shares is the alternate that they commerce on. However, imagine it or not, buying and selling on the New York Inventory Trade (NYSE) versus the Nasdaq Inventory Market can even have some fairly large implications for an organization.
Just a few days in the past, Palantir introduced that it’s shifting its itemizing from the NYSE to the Nasdaq. Shares of Palantir are anticipated to start buying and selling on the Nasdaq on Nov. 26.
On the floor, this will likely appear to be mundane information. However beneath I will break down various examples of different firms which have switched to the Nasdaq and illustrate how their share costs moved following the transition.
Picture supply: Getty Photographs.
Under, I’ve outlined two firms which have moved from their authentic inventory alternate to the Nasdaq in recent times.
Workday: On Sept. 1, 2017, software program firm Workday introduced that it was switching from the NYSE to the Nasdaq. Shares of Workday started buying and selling on the Nasdaq a few weeks later, on Sept. 20. Right here is how Workday inventory has moved since turning into a Nasdaq-traded safety:
Between Sept. 1, 2017, and Sept. 20, 2017, shares declined by a nominal 2%.
Between Sept. 20, 2017, and Sept. 20, 2018, the inventory gained greater than 30%.
Since turning into a member of the Nasdaq, the inventory has elevated 144%.
PepsiCo: On Dec. 8, 2017, beverage and snack conglomerate PepsiCo introduced that it was shifting from the NYSE to the Nasdaq. PepsiCo started buying and selling as a member of the Nasdaq on December 20, 2017.
Between Dec. 8, 2017, and Dec. 20, 2017, shares rose by a nominal 2%.
Between Dec. 20, 2017, and Dec. 20, 2018, the inventory dropped roughly 7%.
Since turning into a member on the Nasdaq, the inventory has elevated 33%.
I believe the choice to maneuver to the Nasdaq benefited PepsiCo and Workday in various methods. First, the Nasdaq is commonly affiliated with expertise, progress, and innovation. Whereas PepsiCo is a client packaged items empire, I believe the transfer to the Nasdaq helped the corporate’s notion as extra of a progress inventory and fewer of an earthly soda and snack enterprise.
As well as, each Workday and PepsiCo joined the Nasdaq-100 following their respective strikes from the NYSE. Incomes inclusion into the Nasdaq-100 index can assist an organization land on extra investor radars. As such, will increase in buying and selling quantity and shopping for can happen which positively influences inventory costs.
Whereas the information about Palantir’s change from the NYSE to the Nasdaq is attention-grabbing, you are most likely questioning why an organization would do that within the first place.
To be sincere, there are loads of causes that might affect an organization’s determination to maneuver exchanges. A few of the extra pedantic elements may very well be associated to charges related to totally different inventory exchanges, for instance. In my eyes, the price buildings amongst totally different exchanges is not actually a priority for Palantir.
Moderately, I believe the transfer to the Nasdaq is rooted in branding. Whereas the Nasdaq is house to firms in many various industries, it’s mostly affiliated with the expertise sector. Given Palantir’s success all through the AI revolution, I believe the notion of the corporate being a consulting enterprise for the federal government has been erased.
Palantir’s shut alliance with large tech cements the corporate as a powerful pressure within the AI business, and I believe shifting to the Nasdaq will assist strengthen the corporate’s picture as a legit participant within the expertise realm.
I beforehand predicted that Palantir’s inclusion into the S&P 500 would assist get the corporate on the radar of extra institutional traders. I am now doubling down on this stance, as turning into a member of the Nasdaq ought to assist higher place Palantir as a beautiful progress inventory in a sea of main expertise firms.
Some analysts are already projecting that elevated institutional shopping for together with the highlight of the Nasdaq may propel Palantir into the coveted Nasdaq-100 index. Ought to that come to fruition, I believe it is nearly a certainty that the corporate’s share value will proceed hovering.
Whereas I can not say for sure what’s going to occur, Palantir’s inventory value has already skilled some momentum following the information of the corporate’s swap from the NYSE. I believe buying and selling on the Nasdaq will assist Palantir change into extra well known as a number one alternative in AI and the expertise arenas over time. For these causes, I believe the inventory will observe the traits I outlined above and proceed hovering after its transfer to the Nasdaq.
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Adam Spatacco has positions in Palantir Applied sciences. The Motley Idiot has positions in and recommends Palantir Applied sciences and Workday. The Motley Idiot has a disclosure coverage.
Prediction: Palantir Inventory Is Going to Soar After Nov. 26 was initially revealed by The Motley Idiot
