Palantir's AI Prowess: From Defense to Prayer Apps, Stock Takes a Dive

Palantir, known for its AI capabilities, saw its stock dip after a brief rally. The company, heavily involved in the defense industry, snagged a $401 million contract extension from the Army for its AI-powered Army Vantage platform. Analysts believe this contract could be worth up to $619 million. But Palantir isn't just about defense. It teamed up with Pray. com, an app for daily prayers and faith-based content, to speed up new product launches. Despite these moves, Palantir's stock has been sliding for three days straight, settling at $71. 51, a 4% drop. Recently, Palantir joined the prestigious Nasdaq 100, which gave its stock a boost. But analysts warn that the stock has been outperforming the S&P 500 significantly, raising expectations and potentially setting it up for a fall. Palantir's stock is still well above its 21-day and 50-day averages, with a perfect Relative Strength Rating of 99. Investors might see a buying opportunity soon, with a potential entry point at Monday's high of $77. 82. Palantir has been a top performer in 2024, with its stock surging over 300%. However, the market retreat is causing many stocks, including Palantir's, to lose ground.