Palantir Technologies (NASDAQ: PLTR) has experienced a remarkable surge in 2024, capturing attention as a key player in the artificial intelligence (AI) sector. The stock price has skyrocketed over 300% this year, and the company has proudly secured a spot in the S&P 500 index.

As the year draws to a close, Palantir is poised for another significant achievement. In this article, we will discuss why December 13 is a crucial date for investors and analyze whether now is a good time to buy the stock.

What to Expect on December 13?

This year, December 13 falls on a Friday. Commonly associated with bad luck, this “Friday the 13th” could turn into a positive day for Palantir investors.

The Nasdaq-100 index will undergo reconstitution next Friday, allowing new companies to be added while others that no longer qualify will be removed.

This matters because the Nasdaq-100 is known for emphasizing growth stocks and exceptional investment opportunities beyond what the S&P 500 offers.

Image source: Getty Images.

Will Palantir Make It to the Nasdaq-100?

On September 6, Palantir announced its entry into the S&P 500. Since then, the stock has surged by 138%, based on market close figures from December 5.

A few months after this announcement, Palantir revealed it would change its trading exchange from the New York Stock Exchange (NYSE) to the Nasdaq.

PLTR data by YCharts

Since its Nasdaq debut on November 26, Palantir’s stock has climbed roughly 10% as of December 5, reflecting strong activity in just over a week of trading.

Management indicated in a press release that “upon transferring, Palantir anticipates meeting the eligibility requirements of the Nasdaq-100 Index.”

While past performance does not guarantee future gains, the stock’s trajectory following its entry into the S&P 500 and its shift to Nasdaq offers insights into potential expectations if it secures a slot in the Nasdaq-100 on December 13.

Should You Consider Buying Palantir Stock?

There’s a good possibility that Palantir will join the Nasdaq-100 next week. If this occurs, it would likely lead to further gains in the stock price. However, merely becoming part of the Nasdaq-100 does not automatically make it a strong buy.

Investors should evaluate the company’s growth outlook, Wall Street’s perspective on its future, and current valuations as well.

Looking ahead, Palantir’s growth prospects appear promising, as well as Wall Street’s confidence in the company’s direction, particularly due to its well-received Artificial Intelligence Platform (AIP).

Analysts such as Dan Ives from Wedbush Securities and Mariana Pérez Mora from Bank of America have maintained a positive stance on the stock.

Nevertheless, a key worry is the current valuation. With a price-to-sales (P/S) multiple of 63.5 and a forward price-to-earnings (P/E) ratio of 149, the valuation seems quite high.

I believe the stock has risen sharply and may undergo a pullback soon. However, any downturn is likely to be short-lived, driven by profit-taking rather than panic, barring any unforeseen issues—which aren’t on the horizon at this moment.

While the chance of joining the Nasdaq-100 is exciting, it represents just another milestone on Palantir’s broader journey. Investors should keep an eye on developments and may want to consider a dollar-cost averaging strategy for long-term holdings.

Your Second Chance for a Potentially Profitable Investment

Have you ever felt you missed out on buying top-performing stocks? If so, pay attention.

Occasionally, our expert analysts issue a “Double Down” stock recommendation for companies they believe are poised for significant growth. If you’re concerned about having missed your opportunity, now is a smart time to invest before it’s too late. The returns speak volumes:

• Nvidia: If you had invested $1,000 when we recommended it in 2009, this would have grown to $369,349!*
• Apple: A $1,000 investment from 2008 would now be worth $45,990!*
• Netflix: If you invested $1,000 when we advised it in 2004, you would have $504,097!*

Currently, we are sending out “Double Down” alerts for three remarkable companies, and this opportunity might not come around again soon.

See 3 “Double Down” stocks »

*Stock Advisor returns as of December 2, 2024

Bank of America is an advertising partner of Motley Fool Money. Adam Spatacco holds positions in Palantir Technologies. The Motley Fool also has positions in and recommends Bank of America and Palantir Technologies. The Motley Fool has a disclosure policy.

The views and opinions expressed herein are those of the author and do not necessarily reflect those of Nasdaq, Inc.