Palantir Technologies: Strong Performance Amidst Market Challenges
With a market cap of $201.3 billion, Palantir Technologies Inc. (PLTR), based in Denver, Colorado, develops software platforms for the intelligence community. The firm assists in counterterrorism efforts both in the United States and abroad, including operations in the United Kingdom.
Palantir is categorized as a “mega-cap stock,” a term for companies worth $200 billion or more. Its sizable market cap signifies its influence and dominance within the software infrastructure sector. By utilizing its deep knowledge in AI and data integration, the company addresses the rising demand for AI-based solutions and is significantly involved in the development and enhancement of large language models (LLMs). This strategic positioning offers substantial growth potential as AI adoption becomes more widespread, affecting various fields such as defense, healthcare, and finance.
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Despite its successes, Palantir has encountered challenges, currently trading 32.7% below its 52-week peak of $125.41, reached on February 19. On a positive note, PLTR shares have increased by 6.7% over the last three months, outperforming the broader Nasdaq Composite’s decline of 12.3% during the same period.
Over the past year, Palantir shares have surged 129.1%, significantly surpassing the Nasdaq Composite’s return of 4.5%. In the last six months, PLTR has reported an impressive growth of 266.8%, while the Nasdaq rose by 5.6%.
For the last year, PLTR has maintained its position above the 200-day moving average. However, since the end of March, it has fallen below the 50-day moving average.
Following its Q4 earnings announcement on February 3, PLTR’s shares rose 1.5%. The company reported a notable 52% increase in U.S. revenue and total revenue growth of 36%, amounting to $828 million. Furthermore, it also experienced a 43% rise in its customer base during the quarter.
Looking ahead, Palantir anticipates Q1 fiscal 2025 revenues to fall between $826 million to $858 million, with adjusted income from operations expected between $354 million and $358 million.
In contrast, rival Microsoft Corporation (MSFT) has struggled, seeing its shares decline by 12.3% over the past six months and by 10.8% over the past year.
Currently, among the 19 analysts covering PLTR, the consensus rating remains a “Hold.” The stock is trading above its mean price target of $84.22.
On the date of publication, Kritika Sarmah did not hold (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article are for informational purposes only. For more details, please view the Barchart Disclosure Policy here.
The views and opinions expressed herein are those of the author and do not necessarily reflect those of Nasdaq, Inc.
