After scoring a gain of nearly 9% through the first two weeks of 2021, shares of Palantir Technologies (NYSE:PLTR) look set to continue their march higher in the coming days as investors get increasingly bullish on the data analytics software provider.
The latest positive catalyst that underlines the soaring investor demand for the young tech company came on Friday, when it was reported that Cathie Wood’s ARK Next Generation Internet ETF (NYSE:ARKW)—which in the past has made big bets on current market darlings such as Tesla (NASDAQ:TSLA) and Roku (NASDAQ:ROKU)—bought 497,100 PLTR shares.
That should help spark another surge in Palantir’s stock price, which has already been a big winner since making its trading debut on Sept. 30.
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Shares—which have gained 165% from their starting price of $10—closed Friday’s session at $25.64, giving the Denver, Colorado-based enterprise software company a market cap of $44.6 billion.
Chart technicals also look promising. They suggest that Palantir could be ready to break out of its recent trading range. The stock is back above the 10-day and 21-day moving averages, which usually signals more gains ahead in the near-term.
As such, we expect Palantir to continue to prosper in the week ahead, despite worries over its valuation and its looming IPO lockup expiry, thanks to the growing demand for its high-tech software tools.
The Peter Thiel-founded company recently won multi-year contracts with the US Food and Drug Administration and the UK's National Health Service, and renewed a contract with the US military.