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Globe and Mail
3 days ago
- Business
- Globe and Mail
Palantir Just Landed a Fannie Mae Deal. Should You Buy PLTR Stock Here?
Valued at a market cap of $292 billion, Palantir (PLTR) is among the largest tech companies in the world. PLTR stock has surged close to 500% in the last 12 months and has rallied over 1,200% since its initial public offering in September 2020. Investors and analysts are bullish on Palantir due to its accelerating revenue growth, improving profit margins, a widening portfolio of products, and expanding corporate partnerships. Earlier this week, Fannie Mae (FNMA) launched an AI-powered Crime Detection Unit in partnership with Palantir to combat mortgage fraud in the U.S. housing market. The new platform utilizes artificial intelligence and machine learning to analyze millions of datasets, finding previously undetectable fraudulent patterns. Early testing demonstrated the technology's effectiveness, identifying fraud in seconds that previously took human investigators two months to discover. The partnership initially focuses on Fannie Mae's multifamily housing business, with potential expansion to Freddie Mac (FMCC) under consideration. Fannie Mae, which holds over $4.3 trillion in assets and owns or guarantees approximately 25% of single-family mortgages and 20% of multifamily mortgages nationally, believes this technology will save millions in fraud losses while protecting lenders, homebuyers, and taxpayers. Palantir Is Gaining Traction in AI Palantir recently announced two major partnerships expanding AI capabilities across the government and financial services sectors. Palantir's FedStart program will enable Anthropic's Claude AI application to serve millions of federal employees at FedRAMP High and DoD Impact Level 5 security standards. This collaboration, hosted on Google Cloud (GOOGL) with multi-cloud flexibility through Amazon (AMZN) Bedrock and Vertex AI, will allow government workers to use Claude for writing, data analysis, and complex problem-solving while maintaining strict security compliance. The partnership builds on last year's agreement, where Anthropic partnered with Palantir through AWS for Impact Level 6 accredited environments. Palantir also partnered with xAI and TWG Global (TWG) to revolutionize AI adoption in the financial services sector. The collaboration addresses the critical issue that 74% of companies remain stuck in proof-of-concept phases, yielding no meaningful returns. Its offering includes governance foundations, industry-tuned AI agent suites, and modular agentic workforces designed to deliver measurable business outcomes within 90 days' Unlike traditional per-seat licensing models, the partnership operates on an outcome-based pricing model, aligning success with measurable results. The initiative combines xAI's advanced models and Colossus supercomputer with Palantir's operational expertise and TWG Global's implementation capabilities, targeting CEO-level engagement to deploy hundreds of thousands of AI agents across enterprises, resulting in transformative productivity gains. Is PLTR Stock a Good Buy? Palantir reported strong financial results for Q1 2025, showcasing remarkable growth across key metrics. It generated $884 million in revenue, representing 39% year-over-year growth. U.S. operations drove exceptional performance, with total U.S. revenue surging 55% year-over-year to $628 million. U.S. commercial revenue grew 71% year-over-year to $255 million, surpassing a $1 billion annual run rate. The company closed 139 deals worth at least $1 million and booked a record U.S. commercial total contract value of $810 million, up 183% year-over-year. Profitability metrics were equally strong, with GAAP income from operations reaching $176 million (a 20% margin) and adjusted income from operations reaching $391 million (a 44% margin). Palantir generated $310 million in cash from operations and $370 million in adjusted free cash flow. CEO Alex Karp attributed success to delivering 'the operating system for the modern enterprise in the era of AI,' highlighting the company's early investment in AI platforms that were initially met with skepticism. Based on strong performance, Palantir raised full-year 2025 guidance, projecting total revenue growth of 36% and U.S. commercial revenue growth of 68%. It expects Q2 revenue to be between $934 million and $938 million. What Is the Target Price for PLTR Stock? The ongoing rally in PLTR stock means it now trades at a lofty price-earnings multiple of over 200x. Out of the 20 analysts tracking PLTR stock, three recommend 'Strong Buy,' 12 recommend 'Hold,' one recommends 'Moderate Sell,' and four recommend 'Strong Sell.' The average target price for PLTR stock is near $94, below the current price near $122.
Yahoo
15-05-2025
- Business
- Yahoo
Starbucks' $1 Billion China Shake-Up? Major Deal Talks Brewing Behind the Scenes
Starbucks (NASDAQ:SBUX) is making quiet moves behind the scenesand they could reshape its future in China. The company has reached out to private equity firms, tech giants, and other strategic players to test interest in its China business, according to people familiar with the talks. While nothing's locked in, insiders say a partial stake sale is on the table, potentially valuing the business in the billions. Conversations are still early, but investors are expected to send in feedback soon. The company hasn't committed to any deal just yetbut when a global brand starts taking meetings like this, you know the playbook is shifting. Warning! GuruFocus has detected 1 Warning Sign with FMCC. This comes as Starbucks faces intense pressure in what used to be one of its brightest growth stories. China is still its second-largest market, but local champions like Luckin Coffee and Cotti Coffee are moving fastand grabbing wallets. Luckin raked in $1.2 billion in revenue last quarter, outpacing Starbucks' $740 million haul in the same region. With more than 7,750 stores across China and a 25% stock drop since February, Starbucks is under the gun to prove it still has room to runand that may require fresh capital, new partners, or both. CEO Brian Niccol has hinted at long-term optimism, saying the company remains committed to China and sees plenty of runway ahead. He's also floated the idea of partnerships beforethough without much detail. If Starbucks pulls the trigger on a stake sale, it would be following a well-trodden path. McDonald's (NYSE:MCD) and Yum! Brands (NYSE:YUM) both spun off their China operations in years past to tap local expertise and consumer trends. Investors now have a front-row seat as Starbucks weighs whether it wants to go soloor team up to win in one of the toughest coffee battlegrounds on the planet. This article first appeared on GuruFocus.
Yahoo
08-05-2025
- Business
- Yahoo
Mortgage Rates Hold Steady -- But Is a Rate Cut Coming?
Mortgage rates stayed stuck at 6.76% this week as Treasury yields held firm, according to Freddie Mac (FMCC). The 15-year rate dipped slightly to 5.89% from 5.92%, a minor shift that came as the Federal Reserve kept interest rates unchanged. Kara Ng, senior economist at Zillow Home Loans, pointed to the steady job market as a buffer, saying the Fed now has the gift of time to gauge how current policies impact the broader economy before making any moves. Warning! GuruFocus has detected 1 Warning Sign with FMCC. Despite pressure from President Trump to slash rates, the Fed isn't biting. While mortgage rates aren't directly set by the central bank, they're heavily influenced by rate expectations and right now, traders are scaling back on rate cut bets. The CME FedWatch tool now sees just a 20.4% chance of a cut in June or July, signaling that markets are holding steady, at least for now. Meanwhile, mortgage applications surged 11% last week, fueled by a jump in both purchase and refi applications, per the Mortgage Bankers Association. Buyers and refinancers are moving fast to lock in rates before the next Fed decision, anticipating that any unexpected rate shifts could rattle the calm. This article first appeared on GuruFocus. Error while retrieving data Sign in to access your portfolio Error while retrieving data Error while retrieving data Error while retrieving data Error while retrieving data
