Investors should expect that some selling pressure will come in the form of short-term profit-taking before year-end. However, any weakness in Palantir will certainly be met with additional buyers as long-term investors are likely to be waiting for an opportunity to buy Palantir stock on a dip.

Palantir receives FedRAMP High Authorization for cloud services, enhancing security and allowing them to work with USG missions.

The software company also leads the list of stocks that could be added to the Nasdaq 100 at the end of December.