palantir shares soar on strong earnings

palantir shares soar on strong earnings
palantir shares soar on strong earnings

Palantir Technologies soared as much as 28% to an all-time high on Tuesday, crossing the $200 billion market capitalization threshold. The surge came after the company reported strong fourth-quarter earnings and guidance, driven by its AI-powered software and technology services. The Denver-based firm posted adjusted earnings of 14 cents per share and $828 million in revenue, exceeding analyst expectations of 11 cents per share and $776 million.

Palantir also issued upbeat guidance for the current quarter and full year, projecting sales of $3.74 billion to $3.76 billion for 2025, ahead of the $3.52 billion estimate. Co-founder and CEO Alex Karp emphasized the unprecedented momentum in Palantir’s commercial and government segments during the earnings call. “We are at the beginning of our trajectory, and we plan to be a cornerstone company in driving this revolution in the U.S. over the next three to five years,” Karp said.

Palantir’s U.S. commercial revenue grew 64% year over year, while U.S. government revenue rose 45%.

palantir’s unprecedented growth trajectory

The company’s AI platform has gained significant traction amid ongoing investor excitement around the technology trend.

Karp noted that Palantir is “very long America” and at the forefront of making the country “more lethal” to deter adversaries. His comments follow recent concerns about the high costs associated with AI models. “Hopefully, it wakes America up,” Karp said.

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“We need to keep running even though we are the first movers and maintain the best technology.”

Several Wall Street firms lifted their price targets on the stock following the report. Bank of America’s Mariana Perez Mora called the company an AI “value adder,” while Morgan Stanley upgraded the shares to equal weight from underweight. Palantir’s success underscores the growing influence of AI in driving business growth and market confidence, setting the stage for continued innovation and competitive positioning in the tech sector.

The company’s shares surged 340% in 2024, making it the best-performing stock in the sector.

Harper Johnson

Harper Johnson stands at the forefront of digital marketing, where she dissects and interprets the impact of online advertising trends, social media dynamics, and search engine algorithms on consumer behavior.

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