Why Palantir Stocked Ripped 18.2% Higher Last Month
Shares of Palantir (NYSE: PLTR) ripped 18.2% higher in September, according to data from S&P Global Market Intelligence. The software and artificial intelligence (AI) platform for the military and big business joined the S&P 500 (SNPINDEX: ^GSPC) index, which has investors bullish about the stock. It recently posted strong earnings and profits and is close to an all-time high of around $40 a share.
In the last 12 months, Palantir is up 162%. Here's why it was soaring yet again in September.
While it has zero impact on a stock's underlying business, investors typically rejoice when a holding is added to the S&P 500. There is an idea that index fund investors will now be forced to allocate to the stock, causing shares to levitate higher. It is unclear how much weight to give this purported influence (I say ignore it), but that is what happened to Palantir in September. The company officially joined the S&P 500 on Sept. 23, and you can distinctly see the stock jump on the day it joined.
Source Fool.com
