Anticipation: Palantir's Shares Are Likely to Skyrocket Following November 26th
2024 has seen significant strides for data analytics company Palantir Technologies (PLTR 2.29%). The year's most notable event for the company was its inclusion in the S&P 500, an achievement many doubted was possible just four years ago, post its public debut, which was quickly dismissed as a government contracting and consulting firm with no real technological capabilities.
The narrative has shifted. Over the past couple of years, Palantir has entered a phase of growth thanks to the successful launch of its new software suite, the Artificial Intelligence Platform (AIP).
This development has sparked considerable interest in Palantir shares over the past few months. As of now, Palantir shares have surged by 283% year to date. With the stock hovering near its all-time high valuation, there's a question of whether it can still scale new heights.
In my opinion, Palantir shares are poised for further growth. I'll break down the company's latest announcement and highlight reasons why investors should keep an eye on Palantir shares on Nov. 26.
Palantir's latest major development
A frequently overlooked aspect of stocks is the stock exchange they're traded on. Interestingly, trading on the New York Stock Exchange (NYSE) versus the Nasdaq Stock Market can have significant implications for a company.
Recently, Palantir announced its intention to migrate its listing from the NYSE to the Nasdaq. Palantir shares are scheduled to begin trading on the Nasdaq on Nov. 26.
At first glance, this may appear as run-of-the-mill news. However, I'll provide examples of other companies that have switched to the Nasdaq and discuss how their stock prices evolved after the transition.
History favors Palantir
Below, I've highlighted two companies that moved from their initial stock exchange to the Nasdaq in recent years.
Workday: On Sep. 1, 2017, software company Workday announced its decision to switch from the NYSE to the Nasdaq. Workday shares began trading on the Nasdaq a couple of weeks later, on Sep. 20. Here's how Workday stock has performed since transitioning to a Nasdaq-traded company:
- Between Sep. 1, 2017, and Sep. 20, 2017, shares fell by a nominal 2%.
- Between Sep. 20, 2017, and Sep. 20, 2018, the stock grew by over 30%.
- Since joining the Nasdaq, the stock has soared by 144%.
PepsiCo: On Dec. 8, 2017, beverage and snack conglomerate PepsiCo announced its intention to switch from the NYSE to the Nasdaq. PepsiCo began trading as a member of the Nasdaq on Dec. 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 stock decreased by approximately 7%.
- Since joining the Nasdaq, the stock has risen by 33%.
I believe that PepsiCo and Workday's decision to migrate to the Nasdaq helped them in various ways. First, the Nasdaq is often associated with technology, growth, and innovation. Although PepsiCo is a consumer packaged goods empire, the transition to the Nasdaq enhanced its perception as a growth stock rather than a mundane soda and snack business.
Furthermore, both Workday and PepsiCo became members of the Nasdaq-100 following their respective transitions from the NYSE. Inclusion in the Nasdaq-100 index can boost a company's visibility and potentially result in increased trading volume and buying, which can positively influence stock prices.
What I anticipate following Palantir's debut on the Nasdaq
While the news about Palantir's move from the NYSE to the Nasdaq might seem unremarkable, you're likely wondering why a company would decide to do this.
To be honest, there could be numerous reasons that could influence a company's choice to switch exchanges. Some of the more technical factors could involve fees associated with different stock exchanges. In my opinion, these costs aren't a significant concern for Palantir.
Instead, I believe Palantir's decision to migrate to the Nasdaq is rooted in branding. Although the Nasdaq is home to firms in various industries, it is most notably associated with the technology sector. Given Palantir's success throughout the AI revolution, I think the notion of the company being a government consulting firm has faded.
Palantir's close ties with leading tech giants underscore the company's prominence in the AI industry, and I believe that moving to the Nasdaq will strengthen Palantir's image as a legitimate player in the technology realm.
Previously, I predicted that Palantir's inclusion into the S&P 500 would help attract more institutional investors. I now strengthen my stance, as joining the Nasdaq should assist in positioning Palantir as an attractive growth stock among leading technology companies.
Some experts predict that enhanced institutional investments, coupled with the attention brought upon it by the Nasdaq, could potentially elevate Palantir into the highly sought-after Nasdaq-100 list. If this projection becomes a reality, I'm pretty confident that the company's stock value will keep climbing higher.
Though I can't guarantee future events, Palantir's share price has already shown signs of growth following the announcement of its transfer from the NYSE. I believe its switch to the Nasdaq will enhance its visibility as a prominent player in the AI and tech sectors over time. Consequently, based on these factors, I think the stock will adhere to the trends I mentioned earlier and continue its upward trajectory post-transfer to the Nasdaq.
Based on the text, here are two sentences that contain the words 'finance', 'investing', 'money':
Given Palantir's impressive growth and surge in stock price, many financial analysts and investors are closely watching its transition to the Nasdaq, hoping to capitalize on potential further gains. With Palantir's stock price hovering near its all-time high valuation, some investors are considering investing in its shares, anticipating that its move to the Nasdaq may further increase its visibility and attract more institutional investors.
