Palantir (PLTR) Earnings on Feb 2 Could Impact Stock Price Significantly
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1h ago
0mins
Source: Fool
- Significant Revenue Growth: Palantir reported a remarkable 63% year-over-year revenue increase to $1.18 billion, with commercial revenue rising 73% to $548 million and government revenue increasing 55% to $633 million, showcasing strong performance across multiple sectors.
- Strong U.S. Commercial Demand: The U.S. commercial segment saw a staggering 121% year-over-year revenue growth in Q4, reaching $397 million, making it the company's best-performing segment, indicating sustained demand for AI software that could drive future growth.
- Outstanding Profitability: Palantir achieved a profit margin of 40%, a level rarely seen in the software industry, indicating strong profitability that provides a foundation for future valuation considerations.
- Significant Valuation Pressure: Despite Palantir's market cap of $394 billion, its revenue over the past 12 months was only $3.9 billion, necessitating $7.9 billion in profits and $19.7 billion in revenue to reach a reasonable valuation, indicating substantial growth pressure ahead.
Analyst Views on PLTR
Wall Street analysts forecast PLTR stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for PLTR is 192.88 USD with a low forecast of 50.00 USD and a high forecast of 255.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
17 Analyst Rating
5 Buy
10 Hold
2 Sell
Hold
Current: 165.900
Low
50.00
Averages
192.88
High
255.00
Current: 165.900
Low
50.00
Averages
192.88
High
255.00
About PLTR
Palantir Technologies Inc. is engaged in building software to assist in counterterrorism investigations and operations. The Company has built four principal software platforms, including Palantir Gotham (Gotham), Palantir Foundry (Foundry), Palantir Apollo (Apollo), and Palantir Artificial Intelligence Platform (AIP). Apollo is a cloud-agnostic, single control layer that coordinates ongoing delivery of new features, security updates, and platform configurations, helping to ensure the continuous operation of critical systems. Gotham enables users to identify patterns hidden deep within datasets, ranging from signals intelligence sources to reports from confidential informants. Foundry transforms the ways organizations operate by creating a central operating system for their data. AIP enables responsible artificial intelligence (AI)-advantage across the enterprise by using primary, core components built to effectively activate large language models and other AI within any organization.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
