Palantir Technologies (NYSE: PLTR) is a US software company specialising in big data analytics. It is headquartered in Denver, Colorado. Founded in 2003, Palantir went public in September 2020.
This guide explains where you can buy shares in Palantir from Australia and what you need to consider before and after investing.
New to buying US shares? Check out our guide to buying shares in US companies.
About the company
Palantir software helps its clients integrate and analyse their siloed data sets. The company has two different customer-facing platforms. Gotham has been designed for government agencies, especially in the defense and intelligence sectors. Foundry was built for commercial companies and has found uses in more than 40 industries. A third platform, called Apollo, offers a continuous delivery system that helps keep the other platforms constantly updated.
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Step 1: Choose a broker
Many online brokers offer different options. There are several things to look at when choosing a broker. These are the top features you should look out for when selecting a broker.
This option is offered by many US share trading platforms. You can save money by trading without paying commissions.
Fractional share investments
Fractional share investing means you can buy a fraction of a share, meaning you can start small on your investment journey.
A user-friendly trading platform
Investing in shares doesn't need to be complicated. Look out for platforms that are easy to use with a clear and simple interface.
Reporting, analysis, and research
Look for platforms with strong reporting and research functions on such things as share price history, recommendations, analyst reports, and price forecasts.
Many platforms have an educational section where you can learn everything you need to know about the trading platform and what you can do with it. This isn’t a dealbreaker, but an extensive knowledge base for using their service absolutely is.
Step 2: Fund your trading account
Next, deposit funds into your account. It might take some time for funds to clear if you have just opened a trading account. Note that some brokers don’t require a minimum deposit to open an account whereas others do.
Step 3: Decide how much to invest in Palantir
Fractional sharing investing is a great choice. Fractional investing allows for you to start small, and take on less risk. You can also make more money by buying at lower prices, so your total cost will be lower.
Step 4: Choose between investing in an ETF or buying shares
ETFs are exchange-traded funds that allow you to either buy shares and own them or invest in them. They work in a similar way to mutual funds and this approach can prove beneficial in certain situations. Because they are not as controllable as mutual funds, these funds can be less attractive to active traders.
Many ETFs are exposed to Palantir, including SoFi Social 50 ETF (SFYF), ARK Next Generation Internet ETF (ARKW), SPDR S&P Software & Services ETF (SXW), and Vanguard Total Stock Market ETF (VTI).
Step 5: Set up an order
You can choose what you want to buy and how much. There are many options for order types. These are the most common:
Instant order to buy/sell shares. This guarantees that your order will be executed immediately but does not guarantee its price.
Let's say that Palantir shares trade at US$30. After you place an order, the price of Palantir shares drops down to US$28. Your purchase price will drop. The same holds true for price increases.
This type of order allows you to sell your shares at a certain price if the share price starts dropping. Let's suppose you want to sell your Palantir shares if the price falls to US$26 per share. Your stop limit order is executed if the shares drop to this price, but if the price for PLTR shares falls through your limit price before the sell order has been filled, then the order may not be executed.
Another mechanism aimed at preventing you from taking a hit on your shares if the price drops. You nominate a price at which you want to sell your Palantir shares - say US$25 per share. Your stop-loss order will be executed if the price falls to that level but your order will be filled at the next available market price.
Step 6: Buy shares
Once you have chosen a broker, funded your account, and decided how to invest your Palantir shares based on the order type, it is time to place your order. You can usually do this with a simple form on your broker’s website or app.
Once you invest in company shares, you have to keep track of your investment in terms of both share prices and company performance.
Track Palantir’s performance
Whether you are buying shares as a long-term investment or with a speculative motive, keeping an eye on your investment is important.
Watch for developments in software, data science and big data analytics
In general, the software industry has weathered the pandemic. Palantir helps its clients to make sense of big data, allowing data scientists to build AI models and applications, and empowering business leaders through data-driven decision-making. Since advancements in technologies will increasingly churn out more and more big data Palantir has growth prospects in both government and in business.
The top Palantir alternative according to recent software buyers is Alteryx. Others include MATLAB by MathWorks, Hubspot Analytics, Qlik, PARIS, and Stata.
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