Palantir share’s jump over 30% on impressive revenue growth

  • PLTR.us
    (${instrument.percentChange}%)

Comment

Palantir (PLTR.us), the maker of defensive software, surged close to 31% yesterday after the company beat Q4 earnings expectations, with the stock closing at $21.87. This is the company's largest one day percentage gain on record. In the past the market had concerns about future deals with the government, but this has been overlooked with the market positively receiving the company's success in its commercial deals for its analytics software.

Palantir's revenue was up 20% from a year ago, coming in at $608m. Wall Street's estimate was $603m. Commercial revenue was up 32% from a year ago at $284m, beating the Wall Street estimate of $271m. Government revenue increased by 11% to $324m which was below analyst expectations of $333m.

The prevailing geopolitical landscape, marked by turbulence in the Middle East, conflict in Ukraine, and a complex dynamic between the United States and China, is poised to be advantageous for Palantir in the near future.Company CEO Alex Karp said that "The parts of the government that are preparing to go to war are either using Palantir or are about to use Palantir" and that the "results reflect both the strength of our software and the surging demand that we are seeing across industries and sectors for artificial intelligence platforms, including large language models, that are capable of integrating with the tangle of existing technical infrastructure that organisations have been constructing for years."

In the upcoming March quarter, Palantir envisions its revenue in the ballpark of $612 million to $616 million, slightly below the Wall Street consensus pegged at $617 million.
Nevertheless, the company anticipates adjusted income from operations to fall within the range of $196 million to $200 million, surpassing the consensus estimate of $172 million.

Palantir forecasts 2024 adjusted free cash flow of between $800 million and $1 billion, above consensus at $658 million.

Technical Analysis


Source: www.tradingview.com

Palantir's green 5-week EMA has crossed above its orange 10-week EMA (black circle) and its RSI has popped back above 50 (black rectangle). The longer the RSI maintains on the bullish side of 50 the greater the underlying positive momentum support and the greater the likelihood of higher prices ahead.

Russell Shor

Senior Market Specialist

Russell Shor joined FXCM in October 2017 as a Senior Market Specialist. He is a certified FMVA® and has an Honours Degree in Economics from the University of South Africa. Russell is a full member of the Society of Technical Analysts in the United Kingdom. With over 20 years of financial markets experience, his analysis is of a high standard and quality.

${getInstrumentData.name} / ${getInstrumentData.ticker} /

Exchange: ${getInstrumentData.exchange}

${getInstrumentData.bid} ${getInstrumentData.divCcy} ${getInstrumentData.priceChange} (${getInstrumentData.percentChange}%) ${getInstrumentData.priceChange} (${getInstrumentData.percentChange}%)

${getInstrumentData.oneYearLow} 52/wk Range ${getInstrumentData.oneYearHigh}
Disclosure

Any opinions, news, research, analyses, prices, other information, or links to third-party sites contained on this website are provided on an "as-is" basis, as general market commentary and do not constitute investment advice. The market commentary has not been prepared in accordance with legal requirements designed to promote the independence of investment research, and it is therefore not subject to any prohibition on dealing ahead of dissemination. Although this commentary is not produced by an independent source, FXCM takes all sufficient steps to eliminate or prevent any conflicts of interests arising out of the production and dissemination of this communication. The employees of FXCM commit to acting in the clients' best interests and represent their views without misleading, deceiving, or otherwise impairing the clients' ability to make informed investment decisions. For more information about the FXCM's internal organizational and administrative arrangements for the prevention of conflicts, please refer to the Firms' Managing Conflicts Policy. Please ensure that you read and understand our Full Disclaimer and Liability provision concerning the foregoing Information, which can be accessed here.

Past Performance: Past Performance is not an indicator of future results.

Spreads Widget: When static spreads are displayed, the figures reflect a time-stamped snapshot as of when the market closes. Spreads are variable and are subject to delay. Single Share prices are subject to a 15 minute delay. The spread figures are for informational purposes only. FXCM is not liable for errors, omissions or delays, or for actions relying on this information.