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Editorial Advisory Board

  • Professor Andrea M. Armani, University of Southern California
  • Ruti Ben-Shlomi, Ph.D., LightSolver
  • James Butler, Ph.D., Hamamatsu
  • Natalie Fardian-Melamed, Ph.D., Columbia University
  • Justin Sigley, Ph.D., AmeriCOM
  • Professor Birgit Stiller, Max Planck Institute for the Science of Light, and Leibniz University of Hannover
  • Professor Stephen Sweeney, University of Glasgow
  • Mohan Wang, Ph.D., University of Oxford
  • Professor Xuchen Wang, Harbin Engineering University
  • Professor Stefan Witte, Delft University of Technology

Why Is Palantir (PLTR) Stock Rocketing Higher Today

PLTR Cover Image

What Happened?

Shares of data-mining and analytics company Palantir (NYSE: PLTR) jumped 6.9% in the afternoon session after the company reported record second-quarter revenue and raised its full-year forecast due to surging demand for its AI platform. The data analytics company announced revenue jumped 48% year-over-year to a record $1 billion for the quarter. Adjusted earnings per share also came in ahead of expectations at $0.16. Palantir pointed to strong demand for its artificial intelligence platform as the key driver, noting its U.S. business grew 68% from the year-ago period. This momentum prompted the company to lift its full-year revenue outlook for the second time. The positive report drew praise from analysts, with Wedbush increasing its price target on what it described as "hyper growth demand" for the company's AI suite.

Is now the time to buy Palantir? Access our full analysis report here, it’s free.

What Is The Market Telling Us

Palantir’s shares are extremely volatile and have had 45 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.

The previous big move we wrote about was 1 day ago when the stock gained 3.6% on the news that investor optimism improved ahead of its second-quarter earnings report, coupled with a new 'Overweight' rating from analysts at Piper Sandler. 

The investment firm initiated its coverage on the data analytics company and assigned a $170 price target, adding to recent bullish commentary from other analysts. Investor confidence also appeared high ahead of the company's earnings release, scheduled for after the close of trading. Wall Street expected Palantir to report revenue growth of nearly 40% year-over-year, supported by a recently secured 10-year contract with the U.S. Army valued at up to $10 billion. A broader rally in software stocks also provided a tailwind, as a weak jobs report fueled expectations of a Federal Reserve interest rate cut.

Palantir is up 128% since the beginning of the year, and at $171.26 per share, has set a new 52-week high. Investors who bought $1,000 worth of Palantir’s shares at the IPO in September 2020 would now be looking at an investment worth $18,027.

Unless you’ve been living under a rock, it should be obvious by now that generative AI is going to have a huge impact on how large corporations do business. While Nvidia and AMD are trading close to all-time highs, we prefer a lesser-known (but still profitable) semiconductor stock benefiting from the rise of AI. Click here to access our free report on our favorite semiconductor growth story.

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