What's Going On With Palantir Technologies (PLTR) Shares?

Palantir Technologies Inc PLTR shares are trading lower by 2.4% to $23.43 Tuesday, despite a lack of company-specific news for the session. Shares of several software and cybersecurity stocks are trading lower ahead of Wednesday’s Fed meeting and due to concerns about interest rates. The Federal Reserve Open Market Committee (FOMC) meeting starts on Tuesday and ends on Wednesday.

Additionally, the Bank of Japan’s decision to abandon its long-held negative interest rate policy has potentially added to market unease ahead of the Fed’s decision. With no significant drivers in the market, pre-Fed session nervousness might keep sentiment subdued.

Higher interest rates can impact the present value of future cash flows, which affects the valuation of growth stocks like Palantir. Investors may anticipate that rising interest rates could increase borrowing costs for companies, potentially slowing down economic growth and affecting the performance of technology stocks.

See Also: Prominent Fund Manager Bullish On Palantir’s AI Potential, Predicts Nearly 60% Upside

What’s Going On With The Fed?

Investors are eagerly awaiting the upcoming FOMC meeting, viewing it as a significant market event for the first quarter of 2024. While the interest rate decision is expected to remain steady, attention is particularly drawn to the “dot plot,” which outlines the anticipated interest rate trajectory of FOMC members.

Previous plans for rate cuts in 2024 and 2025 are now under scrutiny due to recent inflation data surpassing expectations…Read More

Is PLTR A Good Stock To Buy?

An investor can make a few decisions when deciding whether a stock is a good buy. In addition to valuation metrics and price action which you can find on Benzinga's quote pages – like Palantir Technologies‘s page for example – there are factors like whether or not a company pays a dividend or buys a large portion of its stock each quarter.

These are known as capital allocation programs. Palantir Technologies PLTR does not pay a dividend, but obviously has a few ways it can return value to shareholders. Feel free to search Benzinga's dividend calendar for the next company that is due to pay a dividend and determine what kind of yield you can earn for holding a share of the company.

For example, if you're looking to earn an annualized return of 7.47%, you'll need to buy a share of NewtekOne by the Mar. 28, 2024. Once done, you can expect to receive a nominal payout of $0.19 on Apr. 15, 2024.

Buyback programs are obviously different and highly variable. A company can approve a buyback program and purchase shares as it sees fit over the course of time in which the buyback was authorized. Looking through the latest news on Palantir Technologies will often yield whether or not the company has approved a buyback program recently. Buyback programs usually serve as a support for share prices, serving as a backstop for demand.

According to data from Benzinga Pro, PLTR has a 52-week high of $27.50 and a 52-week low of $7.28.