Palantir Technologies (PLTR) stock is soaring Tuesday after the data analytics firm beat top- and bottom-line expectations for its second quarter and raised its full-year revenue forecast.
In the three months ended June 30, Palantir's revenue increased 27.2% year-over-year to $678.1 million, driven by 54.6% growth from U.S. commercial customers to $159.2 million and strong growth in its Artificial Intelligence Platform (AIP). Its earnings per share (EPS) improved to 9 cents from 5 cents in the year-ago period, up 80%.
"The growth of our business has been re-accelerating steadily, and we see an unprecedented opportunity ahead to capture and build on that momentum," wrote Palantir CEO Alex Karp in his letter to shareholders. "Our growth across the commercial and government markets has been driven by an unrelenting wave of demand from customers for artificial intelligence systems that go beyond the merely performative and academic."
From just $107.88 $24.99 for Kiplinger Personal Finance
Be a smarter, better informed investor.
Sign up for Kiplinger’s Free Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
The results surpassed analysts" expectations. Wall Street was anticipating revenue of $653 million and earnings of 8 cents per share, according to MarketWatch.
As a result of its strong performance in the first half of 2024, Palantir raised its full-year revenue forecast. The company now anticipates revenue to arrive between $2.742 billion to $2.75 billion, up from its previous forecast of revenue in the range of $2.677 billion to $2.689 billion. The revised outlook includes U.S. commercial revenue growth of at least 47% to over $672 million, up from its prior guidance for growth of at least 45% to over $661 million.
Is Palantir stock a buy, sell or hold?
Although Palantir is up 51% for the year to date, Wall Street is on the sidelines when it comes to the tech stock. According to S&P Global Market Intelligence, the average analyst target price for PLTR stock is $24.56, representing a discount of roughly 7% to current levels. Additionally, the consensus recommendation is Hold.
Still, there are some bulls to be found, including in financial services firm Wedbush, which has with an Outperform rating (equivalent to a Buy). The group also hiked its price target on Palantir after earnings.
"We are raising our price target to $38 from $35 as the AIP story now takes hold for the Palantir story," said Wedbush analyst Daniel Ives in a note. "We maintain our Outperform rating with our bull case $50. This was a game changer quarter for the Palantir story as the AIP monetization piece on U.S. commercial was front and center as a major growth driver."
Wedbush's $38 price target is the highest on Wall Street and sits 44% higher than where Palantir is currently trading.
Related Content
-
Stocks Retreat as Bubble Worries Ramp Up: Stock Market TodayValuation concerns took hold on Wall Street today, sending Palantir and its fellow tech stocks lower.
-
The Best Mid-Cap ETFs to BuyThe best mid-cap ETFs to buy offer efficient and diversified exposure to a universe full of highly interesting companies.
-
Stocks Retreat as Bubble Worries Ramp Up: Stock Market Today
Valuation concerns took hold on Wall Street today, sending Palantir and its fellow tech stocks lower.
-
The Best Mid-Cap ETFs to Buy
The best mid-cap ETFs to buy offer efficient and diversified exposure to a universe full of highly interesting companies.
-
Tariffs, Inflation, Uncertainty, Oh My: How to Feel Less Stressed About Finances NowTariffs, high prices and an uncertain economy getting you down? These steps can help.
-
Your Estate Plan Isn't 'Done' Until You've Completed These Five Steps, From an Estate Planning AttorneyCongratulations on getting your estate plan in order. Now, you need to communicate the relevant details to ensure your plan is effectively carried out.
-
A Nightmare for Parents: How to Navigate the Legal Boundaries of Tenant Rights During a Family CrisisThis family's story illustrates how important it is to get help sooner rather than later and highlights the complexities of tenant rights and legal protections.
-
Amazon Surge Sends S&P 500, Nasdaq Higher to Start November: Stock Market TodayAmazon inked a $38 billion cloud deal with OpenAI, which sent the stock to the top of the Dow Jones on Monday.
-
If You'd Put $1,000 Into Home Depot Stock 20 Years Ago, Here's What You'd Have TodayHome Depot stock has been a buy-and-hold banger for truly long-term investors.
-
Eight Steps to Help Get You Through the Open Enrollment Jungle at WorkWondering how to survive open enrollment this year? Arm yourself with these tools to cut through the process and get the best workplace benefits for you.
