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We are raising our fair value estimate for narrow-moat Palantir to $11 from $9 after the firm reported a strong quarter with improved profitability and particularly strong billings expansion. As we have highlighted previously, we are optimistic about Palantir’s opportunity in both government and commercial markets. We believe the firm’s expertise in artificial intelligence, coupled with its formidable product lineup makes it a leader in the AI platform space. At the same time, however, despite our estimates being well above consensus for the next three years, we remain unable to rationalize Palantir’s current market valuation. With shares trading around $18 per share, we view them as overvalued and would advise investors to tread with caution as we do not believe the firm’s valuation is backed by strong fundamentals.

Foundry’s impact is seen in healthcare facilities based on efficiency gains in nurse scheduling and patient placement at institutions like HCA, Tampa General, and the Cleveland Clinic. Revenues for the quarter totaled $533 million, a 13% increase YoY and a 2% sequential rise, surpassing the high end of guidance. Excluding the impact of strategic commercial contracts, total revenue lead indicators examples grew 16% YoY and 5% sequentially. Notably, Palantir achieved a major milestone by crossing $2 billion in revenue on a trailing 12-month basis for the first time. The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988.

Barchart Technical Opinion

I am also concerned about why Palantir did not disclose the breakdown in commercial and government segments for its customer count in Q2, as they used to do until now. Palantir is an analytical software company that focuses on leveraging data to create efficiencies in its clients’ organizations. The firm serves commercial and government clients via its Foundry and Gotham platforms, respectively. The Denver-based company was founded in 2003 and went public in 2020. Originally, Palantir’s software was exclusive to government agencies. However, the company has since expanded its reach to include commercial clients.

Among its advantages, the system can speed up the development of new software by as much as 50% simply by securing access to sensitive information and networks. Provides a general description of the business conducted by this company. Below are the latest news stories about PALANTIR TECHNOLOGIES INC that investors may wish to consider to help them evaluate PLTR as an investment opportunity. Dow Jones Industrial Average, S&P 500, Nasdaq, and Morningstar Index (Market Barometer) quotes are real-time. This site is protected by reCAPTCHA and the Google
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• Palantir Technologies’ stock was trading at $6.42 on January 1st, 2023.
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• Our research shows that these estimate changes are directly correlated with near-term stock prices.

The Zacks Consensus EPS estimate has moved 4.26% higher within the past month. Heading into today, shares of the company had gained 0.45% over the past month, lagging the Business Services sector’s gain of 1.18% and the S&P 500’s gain of 0.64% in that time. You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security.

Palantir Technologies Inc Ordinary Shares – Class A

More value-oriented stocks tend to represent financial services, utilities, and energy stocks. On the contrary, Palantir’s commercial segment reported revenue growth of 10% YoY, reaching $232 million, despite a 2% sequential decline attributed to strategic contract fluctuations. Excluding these contracts, commercial revenue increased by an impressive 19% YoY and 5% sequentially. The US commercial sector saw robust growth, with a 20% YoY increase and a 7% sequential rise, demonstrating the company’s success in winning and expanding customer accounts.

Also, Palantir’s strategic expansion can be observed in regions like Japan, Korea, Canada, and the Middle East, aided by partnerships with companies like Fujitsu. The UK Government business stands out, driven by collaborations with organizations like the NHS and the UK Ministry of Defense. Securities trading is offered to self-directed customers by Webull Financial LLC, a broker dealer registered with the Securities and Exchange Commission (SEC). Upgrade to MarketBeat All Access to add more stocks to your watchlist.

NVDA, PLTR, ADBE: 8 More Companies Take White House AI Safety Pledge

The company’s GAAP profitability for the third consecutive quarter, with $28 million net income and $10 million operating income, highlights its growing financial stability. My primary strategy focuses on high-quality, free cash flow generative stocks with an above-average growth rate and a strong business moat. In conclusion, Palantir’s Q performance showcases a company at the pinnacle of its strength, with record-breaking revenues, profits, and growth landmarks. Consecutive quarters of GAAP profitability, impressive revenue figures, and proactive cost management strategies underscore their demonstrated financial stability. Nevertheless, the importance of commercial clients is expected to rise over the long term, given the larger market potential. Yet, regardless of how far we peer into the future, government contracts are anticipated to remain a substantial component of Palantir’s investment strategy.

14 Wall Street analysts have issued “buy,” “hold,” and “sell” ratings for Palantir Technologies in the last twelve months. There are currently 6 sell ratings, 5 hold ratings and 3 buy ratings for the stock. The consensus among Wall Street analysts is that investors should “reduce” PLTR shares. In contrast, they only disclosed the total customer count, which grew by 8% QoQ to 421, in line with the prior quarter’s average growth.

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AIP Assist, another offering, provides context-aware help and support to users, enhancing their productivity. Looking forward, Palantir is confident in its sustained GAAP profitability and has plans to invest in its new product, AIP, and expanding globally. With its growing financial stability, Palantir’s Board of Directors has authorized a stock repurchase program of up to $1 billion, reflecting their confidence in the company’s trajectory and stock value. However, efficient cost management is evident in Palantir’s performance, as indicated by an 81% adjusted gross margin and a 25% adjusted operating margin, outperforming prior guidance.

Morningstar analysts hand-select direct competitors or comparable companies to
provide context on the strength and durability of PLTR’s
competitive advantage. The future of AI software developers is unpredictable because of ongoing advancements in AI and machine learning, and potential regulatory changes. As Richard Gardner notes, upcoming regulations could significantly affect companies.

The AIP platform enables organizations to deploy LLMs within their private networks, ensuring controlled, governed, and trusted AI operations. Palantir demonstrated strong operational performance and strategic focus in Q based on delivering impactful results while capitalizing on AI opportunities. The recently launched Artificial Intelligence Platform (AIP) product offering has garnered significant interest, with over 150 organizations participating in AIPCon. Also, Palantir’s bookings indicate progress, with Total Contract Value booked reaching $642 million, a 62% sequential increase. The company’s remaining deal value stood at $3.4 billion, supported by remaining performance obligations of $968 million.

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Market data provided is at least 10-minutes delayed and hosted by Barchart Solutions.Information is provided ‘as-is’ and solely for informational purposes, not for trading purposes or advice, and is delayed. Data are provided ‘as is’ for informational purposes only and are not intended for trading purposes. Chris MacDonald’s love for investing led him to pursue an MBA in Finance and take on a number of management roles in corporate finance and venture capital over the past 15 years. His experience as https://1investing.in/ a financial analyst in the past, coupled with his fervor for finding undervalued growth opportunities, contribute to his conservative, long-term investing perspective. However, with a valuation at 16 times sales and an unclear balance between hype and real growth, Palantir’s stock could bear substantial risk without faster revenue growth. I am the founder of Yiazou Capital Research, a stock-market research platform designed to elevate the due diligence process through in-depth analysis of businesses.

The company’s name is based on J.R.R. Tolkien’s Lord of the Rings trilogy. The palanteri are indestructible crystal globes used for seeing across great distances. Transparency is how we protect the integrity of our work and keep empowering investors to achieve their goals and dreams. And we have unwavering standards for how we keep that integrity intact, from our research and data to our policies on content and your personal data.

PLTR Overview

PLTR’s beta can be found in Trading Information at the top of this page. A stock’s beta measures how closely tied its price movements have been to the performance of the overall market. Despite landing many government contracts, expected to be profitable, the company isn’t generating significant cash flow. I manage my own highly concentrated portfolio, and I occasionally engage in short-term trades to profit from asset mispricings when Mr. Market does not feel very well. Additionally, the introduction of AIP, leveraging the booming interest in AI and LLMs, further accentuates Palantir’s forward-thinking approach, catering to commercial and defense applications. Palantir is strategically positioned to leverage its AI platform, which integrates LLMs into enterprises to enhance data integration, AI application development, and human-agent collaborations.

These are Palantir Gotham, Palantir Apollo, Palantir Foundry, and Palantir Metropolis. The goal is to generate alpha, or a competitive advantage, for its clients so they can succeed in a rapidly changing environment. Palantir Technologies Inc. is an SaaS company focused on AI and big data analytics.

Despite this diversification, government revenue is pivotal, contributing to 57% of the company’s Q2 revenue. Even more impressive is that the government segment is growing faster than its commercial counterparts. All investments involve risk, and not all risks are suitable for every investor. The value of securities may fluctuate and as a result, clients may lose more than their original investment.

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The firm offers automotive, financial compliance, legal intelligence, mergers and acquisitions solutions. The company was founded by Stephen Cohen, Nathan Dale Gettings, Joseph Lonsdale, Alexander C. Karp, and Peter Andreas Thiel in 2003 and is headquartered in Denver, CO. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company’s expected earnings growth rate into account. Technology Services stocks are, on average, holding a PEG ratio of 1.37 based on yesterday’s closing prices. 14 Wall Street research analysts have issued 12 month target prices for Palantir Technologies’ shares.

At the center of everything we do is a strong commitment to independent research and sharing its profitable discoveries with investors. This dedication to giving investors a trading advantage led to the creation of our proven Zacks Rank stock-rating system. Since 1988 it has more than doubled the S&P 500 with an average gain of +24.32% per year. These returns cover a period from January 1, 1988 through July 31, 2023.