Why Palantir stock's next stop is $220

Core Viewpoint - Palantir Technologies is positioned for further growth, supported by strong technical signals and a bullish outlook in the artificial intelligence sector, with a year-to-date stock increase of 144% [1][8]. Technical Analysis - The stock is currently trading within an ascending "channel up" pattern, with a bullish target of $220 based on consistent higher lows since early May [3][7]. - The stock is hovering around $180, with support from the one-day moving average at $180.50 and the four-hour moving average at $183.50, indicating a favorable buy zone [6]. - Momentum indicators, including the four-hour Relative Strength Index (RSI), suggest a potential rally similar to a previous 80% increase, with projections pointing towards $220 and possibly $255 if the stock breaks above that threshold [7]. Fundamental Analysis - In Q2, Palantir achieved over $1 billion in revenue for the first time, reflecting a 48% year-over-year increase, with U.S. government contracts contributing $426 million (up 53%) and commercial segment revenue growing 93% to $306 million [8][9]. - The company closed 157 deals worth at least $1 million each during the quarter, indicating increasing adoption of its software solutions [9]. - Despite the strong fundamentals, the stock's valuation has raised concerns, with a forward price-to-earnings ratio of 217 and a price-to-sales ratio of 137, which some analysts consider unsustainably high [9].