Palantir Technologies, a key holding of the GraniteShares 2x Long PLTR Daily ETF, is experiencing a downturn due to several factors impacting its stock price. Despite being one of the top performers in the S&P 500 this year, Palantir's stock is facing pressure from a technical perspective. A shooting star candlestick pattern, which formed last week, suggests a potential price decline or consolidation phase. Historically, such patterns have led to significant pullbacks, as seen in late July when the stock dropped 21% over two weeks. Additionally, analysts have expressed caution about the stock's high valuation, with some predicting a potential 43% drop in share price, which adds to the bearish sentiment.
Moreover, Palantir's recent inclusion in major indices like the Nasdaq-100 has heightened its visibility but also increased scrutiny from investors wary of its lofty valuations. The company's robust demand for its AI software offerings has driven a 350% surge in its stock price this year, yet concerns about sustaining this growth into 2025 persist. The stock's recent performance, including a 2.4% decline during midday trading on December 30, 2024, further underscores the market's cautious outlook.
The GraniteShares 2x Long PLTR Daily ETF (PTIR) is currently trading at $132.90, reflecting a 2.48% decrease from the previous close.