Palantir Technologies is set to join the S&P 500 on September 23, 2024
This milestone mirrors Tesla's inclusion in the index back on December 21, 2020
- Tesla's Journey: Prior to its S&P 500 inclusion, Tesla's stock experienced a significant upward trend, which continued for several weeks post-inclusion before entering a prolonged period of sideways consolidation for almost a year (chart above)
- Palantir's Path: Interestingly, Palantir's stock price trajectory in the months leading up to its S&P 500 inclusion shows striking similarities to Tesla's pre-inclusion performance (chart below)
Do you think that Palantir will behave similarly to Tesla after the inclusion? i.e.:
- Short-term: Further upward trend in the immediate weeks following its inclusion - Long-term: A possible sideways consolidation, akin to Tesla's post-inclusion phase
Nota
Even I was very surprised how almost 1:1 the price development of NYSE:PLTR before and after S&P500 inclusion followed TSLA after its inclusion
If this trend continues Palantir shares will have to take a well-deserved break in the coming weeks/months for now
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