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.

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

Key Takeaways Palantir shares jumped Tuesday after the analytics software provider announced that its entire product suite has received approval for use in processing sensitive federal workloads, positioning the firm to provide an array of services to government entities.