What's Going On With Palantir Stock Tuesday?

Palantir Technologies Inc PLTR shares are trading higher Tuesday after rising more than 6% to start the week. Here’s a look at what’s going on.

What To know: Palantir shares closed Monday up 6.15% after Argus Research analyst Joseph Bonner initiated coverage on the stock with a Buy rating and announced a price target of $29, highlighting momentum around the company’s commercial business.

The Argus Research analyst noted that Palantir has significantly improved its profitability and cash flow in recent years. As a result, the analyst is positive on the stock despite it trading with a premium valuation, he said, adding that Palantir is “highly differentiated.” Bonner expects Palantir’s earnings to grow approximately 19% per year over the next five years.

Palantir reported earnings for the first quarter last month. Despite beating estimates on the top and bottom lines and raising its full-year guidance, the stock traded lower. It has since recovered as software and AI continue to be dominant themes in the market.

Palantir due to report earnings early August. The company is expected to report earnings of 8 cents per share and revenue of $652.139 million, according to Benzinga Pro.

Palantir shares may also be getting a lift on Tuesday after Ark Invest’s Cathie Wood purchased 9,707 Palantir shares for the ARK Space Exploration & Innovation ETF.

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How To Buy PLTR Stock

Besides going to a brokerage platform to purchase a share – or fractional share – of stock, you can also gain access to shares either by buying an exchange traded fund (ETF) that holds the stock itself, or by allocating yourself to a strategy in your 401(k) that would seek to acquire shares in a mutual fund or other instrument.

For example, in Palantir's case, it is in the Information Technology sector. An ETF will likely hold shares in many liquid and large companies that help track that sector, allowing an investor to gain exposure to the trends within that segment.

PLTR Price Action: Palantir shares were up 0.32% at $25.10 at the time of publication, according to Benzinga Pro.

Photo: Cory Doctorow from Flickr.