We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Palantir Earnings Review: Buy the Dip on a Leading AI Platform?
Read MoreHide Full Article
Palantir Technologies (PLTR - Free Report) is a prominent data analytics company that specializes in providing advanced software solutions for data integration, analysis, and decision-making. On Monday after the market closed Palantir Technologies reported Q2 earnings, which were in line with analysts’ expectations.
Known for its cutting-edge artificial intelligence and machine learning capabilities, Palantir's software is utilized by government agencies, financial institutions, and commercial enterprises to derive valuable insights from complex data sets. With a focus on optimizing operational efficiency and strategic decision-making, Palantir plays a pivotal role in transforming how organizations harness the power of data and AI for enhanced performance and innovation.
Palantir Technologies stock has been on a tear since the start of the year, already rallying 166% YTD. Although earnings came in as expected and management raised forward guidance, it seems the report was a sell the new event. The stock is down -5% following the news.
Nonetheless, PLTR is currently a Zacks Rank #2 (Buy) stock, with huge opportunities in front of it. Palantir Technologies just launched its exciting new ‘Artificial Intelligence Platform’ (AIP), which management says received “unprecedented” interest from customers. In Q2 the number of customers at PLTR increased 38%, showing expansion from their primarily government contract clientele.
Image Source: Zacks Investment Research
Bullish Price Action
Although PLTR stock sold off following the earnings report, it clearly drew some considerable buying. Today’s candle shows a nice reversal from a key level of support demonstrating that investors were still interested in acquiring shares even after the sell off. This reversal is promising for bulls expecting more upside this year.
ChartPLTRtex
Improving Earnings Estimates
Earnings estimates have slowly begun to see revisions higher since the start of this year. In the chart below you can see earnings trend sloping higher. FY24 earnings estimates have been revised higher by 4% over the last two months and are projected to grow 20.2% YoY to $0.26 per share.
Sales are forecast to grow at a nice pace as well. FY23 sales are expected to grow 16% YoY to $2.2 billion and FY24 sales are expected to climb 18.6% YoY to $2.62 billion.
Image Source: Zacks Investment Research
The Zacks earnings ESP is projecting consecutive earnings beats over the next several quarters as well. Earnings beats would bode well for Palantir bulls.
Image Source: Zacks Investment Research
Valuation
Because of the potential Palantir’s platform offers, it trades at an uber-premium valuation. PLTR is trading at a one year forward sales multiple of 17.2x, which is above the industry average of 5.5x, and above its three-year median of 14.6x. Admittedly, Palantir will have to maintain very high sales and earnings growth if it hopes to grow into this valuation.
Image Source: Zacks Investment Research
Bottom Line
Palantir Technologies is one of the market’s best opportunities for investors to get exposure to AI technology, and thus remains a compelling investment. Although other AI adjacent companies like Microsoft(MSFT - Free Report) have received a huge amount of attention this last year, Palantir has been utilizing the technology for years now under the radar.
Certainly, Microsoft’s attempts to implement AI look to be succeeding, especially with their newest AI enabled Office 365, but investors shouldn’t overlook the prospects at Palantir Technologies.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Palantir Earnings Review: Buy the Dip on a Leading AI Platform?
Palantir Technologies (PLTR - Free Report) is a prominent data analytics company that specializes in providing advanced software solutions for data integration, analysis, and decision-making. On Monday after the market closed Palantir Technologies reported Q2 earnings, which were in line with analysts’ expectations.
Known for its cutting-edge artificial intelligence and machine learning capabilities, Palantir's software is utilized by government agencies, financial institutions, and commercial enterprises to derive valuable insights from complex data sets. With a focus on optimizing operational efficiency and strategic decision-making, Palantir plays a pivotal role in transforming how organizations harness the power of data and AI for enhanced performance and innovation.
Palantir Technologies stock has been on a tear since the start of the year, already rallying 166% YTD. Although earnings came in as expected and management raised forward guidance, it seems the report was a sell the new event. The stock is down -5% following the news.
Nonetheless, PLTR is currently a Zacks Rank #2 (Buy) stock, with huge opportunities in front of it. Palantir Technologies just launched its exciting new ‘Artificial Intelligence Platform’ (AIP), which management says received “unprecedented” interest from customers. In Q2 the number of customers at PLTR increased 38%, showing expansion from their primarily government contract clientele.
Image Source: Zacks Investment Research
Bullish Price Action
Although PLTR stock sold off following the earnings report, it clearly drew some considerable buying. Today’s candle shows a nice reversal from a key level of support demonstrating that investors were still interested in acquiring shares even after the sell off. This reversal is promising for bulls expecting more upside this year.
ChartPLTRtex
Improving Earnings Estimates
Earnings estimates have slowly begun to see revisions higher since the start of this year. In the chart below you can see earnings trend sloping higher. FY24 earnings estimates have been revised higher by 4% over the last two months and are projected to grow 20.2% YoY to $0.26 per share.
Sales are forecast to grow at a nice pace as well. FY23 sales are expected to grow 16% YoY to $2.2 billion and FY24 sales are expected to climb 18.6% YoY to $2.62 billion.
Image Source: Zacks Investment Research
The Zacks earnings ESP is projecting consecutive earnings beats over the next several quarters as well. Earnings beats would bode well for Palantir bulls.
Image Source: Zacks Investment Research
Valuation
Because of the potential Palantir’s platform offers, it trades at an uber-premium valuation. PLTR is trading at a one year forward sales multiple of 17.2x, which is above the industry average of 5.5x, and above its three-year median of 14.6x. Admittedly, Palantir will have to maintain very high sales and earnings growth if it hopes to grow into this valuation.
Image Source: Zacks Investment Research
Bottom Line
Palantir Technologies is one of the market’s best opportunities for investors to get exposure to AI technology, and thus remains a compelling investment. Although other AI adjacent companies like Microsoft (MSFT - Free Report) have received a huge amount of attention this last year, Palantir has been utilizing the technology for years now under the radar.
Certainly, Microsoft’s attempts to implement AI look to be succeeding, especially with their newest AI enabled Office 365, but investors shouldn’t overlook the prospects at Palantir Technologies.