Home Finance Should You Buy Palantir Shares Before December 13?

Should You Buy Palantir Shares Before December 13?

by trpliquidation
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Should You Buy Palantir Shares Before December 13?

Palantir Technologies (NASDAQ:PLTR) has had an incredible run in 2024. The company has become one of the most talked about platforms fueling the artificial intelligence (AI) narrative, with its shares up more than 300% this year alone and joining the S&P500 index.

But with just a few weeks left in the year, Palantir may have one last big milestone in store. Below I’m going to explain why December 13 is an important date for Palantir investors. Let’s see what investors should look out for and assess whether the stock is a good buy right now.

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This year December 13 falls on a Friday. And while Friday the 13th is usually associated with bad luck or superstition, Palantir investors may have even more good news coming their way.

Next Friday the Nasdaq-100 index will be rebuilt. This means that a new selection of companies will be added to the coveted index, replacing stocks that are no longer eligible.

This is important because the Nasdaq-100 is generally associated with growth stocks and lucrative opportunities outside of the S&P 500.

A humanoid robot viewing stock prices on an electronic display.
Image source: Getty Images.

On September 6, Palantir announced that it had officially gained entry into the S&P 500. Since the date of that announcement, Palantir shares have risen 138% as of the market close on December 5.

A few months later, Palantir announced that it was going to change the stock market on which it trades – from the New York Stock Exchange (NYSE) to the Nasdaq.

PLTR diagram
PLTR data Ygraphs

Since joining the Nasdaq on November 26, Palantir’s shares are up about 10% (as of market close on December 5). That’s a pretty dramatic move in just seven trading days.

In the press release about this announcement, management indicated that “Palantir expects to meet the eligibility requirements for the Nasdaq-100 Index upon the transfer.”

While history is no guarantee of future results, the stock’s performance following its entry into the S&P 500 and transition to the Nasdaq serves as a good indicator of what investors could expect if the company were to earn a spot on December 13 the Nasdaq-100. .

I think there’s a good chance Palantir will be added to the Nasdaq-100 next week, and if that were to happen, I’d be shocked if the stock doesn’t rise even further. But while joining the Nasdaq-100 is a respectable milestone, such an achievement alone doesn’t make Palantir stock a buy.

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