Big Data, Big Hype—Will PLTR Print or Plummet Next?

A Palantir office building in Tokyo_ Image by Hiroshi-Mori-Stock via Shutterstock_

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Investing in the funds involves a high degree of risk. Unlike traditional ETFs, or even other leveraged and/or inverse ETFs, these leveraged and/or inverse single-stock ETFs track the price of a single stock rather than an index, eliminating the benefits of diversification. Leveraged and inverse ETFs pursue daily leveraged investment objectives, which means they are riskier than alternatives which do not use leverage. They seek daily goals and should not be expected to track the underlying stock’s performance over periods longer than one day. They are not suitable for all investors and should be utilized only by investors who understand leverage risk and who actively manage their investments. The Funds will lose money if the underlying stock’s performance is flat, and it is possible that the Bull Fund will lose money even if the underlying stock’s performance increases, and the Bear Fund will lose money even if the underlying stock’s performance decreases, over a period longer than a single day. Investing in the Funds is not equivalent to investing directly in PLTR.

Palantir Technologies, Inc. (Ticker: PLTR) has been one of the top-performing tech names in the market over the past several months. Shares have recently hit a new all-time high and bulls are trying to capitalize on momentum further. Is there enough gas in the tank to continue this bull run? Or will bears finally make their move?

Tech Advancements and Revenue Sources

Palantir’s continued development of its Artificial Intelligence Platform (AIP), particularly its Gotham and Foundry programs, represent a transformative shift beyond its traditional government contracts into commercial markets.

Palantir’s AIP allows for organizations to integrate and analyze massive datasets in real time, offering solutions for industries like healthcare, manufacturing, and finance. The ability to deliver actionable insights through AI-driven analytics sets Palantir up as a leader in enterprise AI, with potential to revolutionize supply chain management, fraud detection, and predictive modeling.

Palantir’s increasingly diversified revenue streams—government contracts, commercial enterprise solutions, and expanding AI applications—bolster its growth prospects. This could drive significant revenue growth and support PLTR’s stock price.

Traders seeking short-term upside momentum in Palantir may find a trade with Direxion’s Daily PLTR Bull 2X Shares (Ticker: PLTU), which seeks daily investment results, before fees and expenses, of 200% of the performance of Palantir Technologies, Inc. common stock (Ticker: PLTR).

Below is a daily chart of PLTR as of June 12, 2025.

Source: TradingView.com

Candlestick charts display the high and low (the stick) and the open and close price (the body) of a security for a specific period. If the body is filled, it means the close was lower than the open. If the body is empty, it means the close was higher than the open.

The performance data quoted represents past performance. Past performance does not guarantee future results.

DOGE Threats and Regulators

Palantir faces business pressures from both regulatory and privacy standpoints. Its work with government agencies in surveillance and defense could trigger U.S. and EU investigations into data usage, potentially leading to fines or restrictions. A mid-2025 regulatory ruling could impose operational constraints, further eroding investor confidence and impacting the stock price.

Plus, there is the threat of existing government contracts being cut off if DOGE deems them wasteful. The current budget that’s being pushed through Congress could have a big impact on this name. Meanwhile, competitors like Snowflake, Databricks, and tech giants threaten Palantir’s market share in AI and data analytics, especially if they offer more cost-effective solutions.

The next earnings report isn’t until August 4th. If the company disappoints or issues negative guidance around that time surrounding existing contracts especially, it could lead to some downside action in this name.

In this situation, Direxion’s Daily PLTR Bear 1X Shares (Ticker: PLTD), which seeks daily investment results, before fees and expenses, of 100% of the inverse performance in common shares of Palantir Technologies, Inc. (Ticker: PLTR) could catch a bid.

*Definitions and Index Descriptions

An investor should carefully consider a Fund’s investment objective, risks, charges, and expenses before investing. A Fund’s prospectus and summary prospectus contain this and other information about the Direxion Shares. To obtain a Fund’s prospectus and summary prospectus call 866-476-7523 or visit our website at direxion.com. A Fund’s prospectus and summary prospectus should be read carefully before investing.

The Funds have derived all disclosures contained in this document regarding Palantir Technologies Inc. from publicly available documents. In connection with the offering of each Fund’s securities, neither the Funds, the Trust, nor the Adviser or any of its respective affiliates has participated in the preparation of such documents. Neither the Funds, the Trust nor the Adviser or any of its respective affiliates makes any representation that such publicly available documents or any other publicly available information regarding Palantir Technologies Inc. is accurate or complete. Furthermore, the Funds cannot give any assurance that all events occurring prior to the date hereof (including events that would affect the accuracy or completeness of the publicly available documents described above) that would affect the trading price of Palantir Technologies Inc. have been publicly disclosed. Subsequent disclosure of any such events or the disclosure of or failure to disclose material future events concerning Palantir Technologies Inc. could affect the value of a Fund’s investments with respect to Palantir Technologies Inc. and therefore the value of the Funds.

Direxion Shares Risks – An investment in a Fund involves risk, including the possible loss of principal. Each Fund is non-diversified and includes risks associated with a Fund concentrating its investments in a particular security, industry, sector, or geographic region which can result in increased volatility. A Fund’s investments in derivatives such as futures contracts and swaps may pose risks in addition to, and greater than, those associated with directly investing in securities or other investments, including imperfect correlations with underlying investments or the Fund’s other portfolio holdings, higher price volatility and lack of availability. As a result, the value of an investment in a Fund may change quickly and without warning.

Leverage Risk – The Bull Fund obtains investment exposure in excess of its net assets by utilizing leverage and may lose more money in market conditions that are adverse to its investment objective than a fund that does not utilize leverage. A total loss may occur in a single day. Leverage will also have the effect of magnifying any differences in the Fund’s correlation with PLTR and may increase the volatility of the Bull Fund.

Daily Correlation Risk – A number of factors may affect the Bull Fund’s ability to achieve a high degree of correlation with PLTR and therefore achieve its daily leveraged investment objective. The Bull Fund’s exposure to PLTR is impacted by PLTR’s movement. Because of this, it is unlikely that the Bull Fund will be perfectly exposed to PLTR at the end of each day. The possibility of the Bull Fund being materially over- or under-exposed to PLTR increases on days when PLTR is volatile near the close of the trading day.

Daily Inverse Correlation Risk – A number of factors may affect the Bear Fund’s ability to achieve a high degree of inverse correlation with PLTR and therefore achieve its daily inverse investment objective. The Bear Fund’s exposure to PLTR is impacted by PLTR’s movement. Because of this, it is unlikely that the Bear Fund will be perfectly exposed to PLTR at the end of each day. The possibility of the Bear Fund being materially over- or under-exposed to PLTR increases on days when PLTR is volatile near the close of the trading day.

Palantir Technologies Inc. Investing Risk – Palantir Technologies Inc. faces risks associated with: a limited number of customer accounts for a substantial portion of its revenue; the development and deployment of new technologies; reliance on or capability with third-party products and services; the ability to hire, retain, train and motivate qualified personnel and senior management; sales and operations; intense competition; among other risks.

Information Technology Sector Risk — The value of stocks of information technology companies and companies that rely heavily on technology is particularly vulnerable to rapid changes in technology product cycles, rapid product obsolescence, government regulation, and competition, both domestically and internationally, including competition from competitors with lower production cost.

Software Industry Risk — Companies that develop and implement computer software can face risks associated with intense competition, especially in new product development, deployment and delivery, product obsolescence or saturation, cybersecurity risks as well as changes in regulation especially with respect to consumer or customer data, and risks associated with technology.

Additional risks of each Fund include Effects of Compounding and Market Volatility Risk, Derivatives Risk, Counterparty Risk, Rebalancing Risk, Intra-Day Investment Risk, Industry Concentration Risk, Market Risk, Indirect Investment Risk, and Cash Transaction Risk. Additionally, for the Direxion Daily PLTR Bear 1X Shares, Shorting or Inverse Risk. Please see the summary and full prospectuses for a more complete description of these and other risks of a Fund.

ALPS Distributors, Inc.

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