Latest news with #PLTR
Yahoo
7 hours ago
- Business
- Yahoo
Palantir's AIP Platform Sees Soaring Adoption Across Enterprises
Big data and AI specialist Palantir Technologies PLTR is gaining significant momentum with its Artificial Intelligence Platform (AIP), which is quickly emerging as the company's most powerful enterprise growth engine. AIP adoption is snowballing, pushing U.S. commercial revenue up 71% year over year and 19% sequentially in the first quarter of 2025, breaking the $1 billion annual run rate barrier for the first time. Total contract value in this segment skyrocketed 239% YoY, with deal sizes proliferating, more than double the number of $1 million contracts closed compared to last year. The company's AIP bootcamps, short, intensive training programs designed to help clients implement the platform, have surged in popularity. These sessions are enabling customers to deploy production-grade AI workflows quickly, drastically reducing time-to-value and highlighting AIP's usability. Palantir's AIP is enabling enterprises to deploy autonomous AI agents that drastically compress decision timelines and increase productivity not by percentages, but by multiples. Recently, Walgreens deployed AI-powered workflows to 4,000 stores in just eight months. AIG expects to double its five-year CAGR thanks to Palantir-driven technology, and a major healthcare client converted to a five-year, $26 million agreement just five weeks after a trial. While the market obsesses over AI model development, PLTR is dominating the demand side, delivering enterprise-ready solutions that generate quantified exceptionalism from day one. The U.S. commercial business now seems to be the company's most dynamic growth engine, and AIP is the accelerant. Alphabet's GOOGL Google, Microsoft MSFT, and Salesforce CRM are rapidly advancing generative AI. Microsoft integrates AI in Office via Copilot and expands Azure's AI. Google embeds AI in Workspace and enhances Vertex AI. Salesforce incorporates AI across its CRM, especially through Einstein Copilot and Data Cloud. Microsoft is also focusing on AI governance, while Google is strengthening AI security. Salesforce further refines dynamic customer experiences. Yet, Palantir stands apart, excelling in secure, high-stakes domains like defense and healthcare. Unlike Salesforce and Google's customer-facing tools, or Microsoft's broader approach, Palantir's AIP uniquely powers core operational decisions in ways Salesforce, Microsoft and Google have yet to match. The stock has surged a whopping 74% year to date, significantly outperforming the industry's 7.6% rally. Image Source: Zacks Investment Research From a valuation standpoint, PLTR trades at a forward price-to-sales ratio of 70.99, well above the industry's 5.44. It carries a Value Score of F. Image Source: Zacks Investment Research The Zacks Consensus Estimate for PLTR's earnings has been on the rise over the past 30 days. Image Source: Zacks Investment Research PLTR stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Microsoft Corporation (MSFT) : Free Stock Analysis Report Salesforce Inc. (CRM) : Free Stock Analysis Report Alphabet Inc. (GOOGL) : Free Stock Analysis Report Palantir Technologies Inc. (PLTR) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research Sign in to access your portfolio
Globe and Mail
8 hours ago
- Business
- Globe and Mail
Dear Palantir Stock Fans, Mark Your Calendars for June 30
Palantir Shares (PLTR) have rallied more than 50% over the last three months and touched a new all-time high of $134.48 today, June 2. However, as the firm enters the large-cap universe, new turbulence is likely to ensue. Trivariate Research has marked Palantir as an 'extreme outlier' in value, one of the most pricey stocks the firm has covered in 25 years. With S&P Global index rebalancing planned for June 30, institutional investors can now take advantage of the window to cut their exposure, which can lead to rotational flows out of the name. This comes against the background of general market instability, with the S&P 500 Index ($SPX) and the Dow Jones Index ($DOWI) falling by 0.6% last Wednesday despite PLTR moving slightly upward. With valuation indicators flashing warning signs and comparative historical indicators calling for restraint, Palantir's premium status can be expected to come under its first major test. Regarding Palantir Stock Palantir Technologies (PLTR) is an enterprise software firm that is focused on AI-driven data integration and decision platforms for government and commercial clients. With a market capitalization close to $311 billion, it is firmly placed in the large-cap space. The company stock has gained a whopping 510% over the last 52 weeks. That is way more than the overall S&P 500 Index, which rose around 12% over the same period. Palantir stock is up by 7.3% in the last five days alone. No matter how good price momentum is, there are still valuation measures indicating overexuberance. Palantir has an astronomical forward price-earnings multiple of 330.6x as well as an over 100x price-sales multiple. That is well above software historical averages and indicates ongoing 40% revenue growth every year for ten consecutive years, something which no peer has ever come close to doing on Palantir's current size, notes Trivariate Research. Palantir Beats on Earnings and Raises Guidance Palantir delivered a strong Q1 2025 earnings report, with revenue of $884 million, up 39% year-over-year and 7% quarter-over-quarter, exceeding expectations. U.S. revenue surged 55% YoY to $628 million, with U.S. commercial revenue expanding 71% YoY to $255 million, surpassing a $1 billion annual run rate. The company posted adjusted EPS of $0.13 versus $0.08 GAAP EPS, supported by a 44% adjusted operating margin and adjusted free cash flow of $370 million, or a 42% margin. GAAP net income rose to $214 million, a 24% margin. Key operational metrics further confirmed momentum. Palantir closed 139 deals over $1 million, including 31 above $10 million. It also booked $810 million in U.S. commercial total contract value, up 183% year-over-year, and reported a U.S. commercial remaining deal value of $2.32 billion, up 127% YoY. Looking ahead, Palantir raised full-year revenue guidance to a range of $3.89 billion to $3.902 billion, representing 36% growth, with adjusted income from operations expected between $1.711 billion and $1.723 billion. The company also boosted its adjusted free cash flow outlook to $1.6 billion to $1.8 billion and guided Q2 revenue to $934 billion and $938 million. Management reiterated expectations for GAAP profitability in every quarter of 2025. What Analysts Foresee for Palantir Stock Sentiment among analysts is still mixed. Palantir has a current 'Hold' consensus, but most companies are hesitant based on price. Palantir has an average price target of $93, which represents downside potential of about 30%. The substantial price target spread indicates increasing concern regarding high multiples, particularly against the background of market rotation or macroeconomic-driven correction.
Business Insider
3 days ago
- Business
- Business Insider
Cathie Wood Loses Confidence in Palantir Stock (PLTR) Ahead of Q1 Earnings
Cathie Wood's ARK Investment Management continues to trim holdings of Palantir (PLTR) ahead of the AI-driven data analytics firm's Q1 earnings, due on May 5. On May 2, ARK Invest disclosed selling $30.7 million worth of Palantir stock. Earlier on May 1, the investor reported a $2.65 million sale of PLTR shares. Protect Your Portfolio Against Market Uncertainty Discover companies with rock-solid fundamentals in TipRanks' Smart Value Newsletter. Receive undervalued stocks, resilient to market uncertainty, delivered straight to your inbox. For those tracking ARK Invest's moves, ARK Invest has consistently held PLTR stock in multiple ETFs, showing Wood's strong belief in its data analytics and AI potential. Thus, the latest sales appear to be profit-taking, as Palantir stock has gained over 64% year-to-date, partly due to new defense contracts and expanding commercial applications. ARK Bets Big on Roku, GH, ABNB While selling PLTR, ARK Invest has increased its positions in other tech and healthcare companies. This shows a shift in capital toward areas with faster growth in the near future. On May 2, ARK doubled down on Roku (ROKU), buying 369,016 shares worth $24.8 million. With streaming competition heating up, Wood's bet suggests confidence in Roku's ability to maintain a strong position. Another major purchase was Guardant Health (GH), with ARK investing $20.5 million in the oncology-focused biotech firm. This aligns with ARK's long-term focus on precision medicine and AI-powered healthcare solutions. Also, Wood bought 49,560 shares of Airbnb (ABNB) valued at $6.1 million. The investment signals optimism in short-term rentals amid a strong travel rebound. Analysts' View Ahead of PLTR's Q1 Earnings Ahead of Q1 results, analysts expect Palantir to report earnings per share (EPS) of $0.13, up 62.5% from the prior-year quarter. Also, the company's revenue is expected to increase 35.9% to $862.17 million in the first quarter. While the projections show year-over-year growth, analysts remain less optimistic heading into Q1. Last week, RBC Capital analyst Rishi Jaluria reiterated a Sell rating on PLTR stock. Also, his price target of $4o implies a 67.8% downside potential from the current level. Is PLTR a Good Stock to Buy? Turning to Wall Street, analysts have a Hold consensus rating on Palantir stock based on two Buys, eight Holds, and three Sells assigned in the past three months. The average PLTR stock price target is $89.17, implying a downside potential of 28.25%.
Yahoo
4 days ago
- Business
- Yahoo
Palantir Technologies (PLTR) Is a Big Beneficiary of Call Buying by Retail Participants, Veteran Investor Says
Retail investors and traders "are buying massive amounts" of call options on Palantir Technologies Inc. (NASDAQ:PLTR), driving the shares higher, longtime investor Don Kaufman said during a recent appearance on Schwab Network. Kaufman is trying to exploit the trend by buying call options on PLTR himself. Kaufman is the co-founder of TheoTrade. By buying a huge number of call options on Palantir Technologies Inc. (NASDAQ:PLTR), individuals are forcing "market makers" to buy PLTR stock, Kaufman explained. That dynamic creates a "retail gamma squeeze" which causes the shares to climb, according to the investor. Kaufman bought calls with a $126 strike price that expire on June 20. He's also selling June 20 calls with a $130 strike price. His net premium on the trade is $1.55 per pair of options. "I'm trying to hop on board with the retail freight train that has become the primary driver of this market," he explained. While we acknowledge the potential of PLTR as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than PLTR and that has 100x upside potential, check out our report about this cheapest AI stock. READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires. Disclosure: None. This article is originally published at Insider Monkey.
Yahoo
5 days ago
- Business
- Yahoo
PLTR vs. COHR: Which AI-Driven Tech Stock Has More Upside Now?
Both Palantir Technologies Inc. PLTR and Coherent Corp. COHR are major players in the AI and data infrastructure space. Palantir is a leading provider of enterprise-level artificial intelligence software, specializing in data integration, large-scale analytics, machine learning operations, and decision-making platforms. Its core platforms — Palantir Gotham, Foundry and Artificial Intelligence Platform (AIP) — are specifically built to empower organizations in both government and commercial sectors to harness the power of their data through real-time decision intelligence and AI-driven operations. Coherent is a critical supplier of optical and semiconductor technologies, with increasing relevance in AI hardware infrastructure. Its products include high-speed optical transceivers, lasers, compound semiconductors, and advanced substrates, all of which are essential for the high-bandwidth, low-latency data transmission required in AI-centric applications such as data centers, autonomous systems and edge computing. Palantir's AI strategy is comprehensive, combining its proprietary Foundry and Gotham platforms with a solid plan to promote AI adoption across both government and commercial sectors. Its AI Platform (AIP) is the backbone of these capabilities, enabling organizations to process large datasets and derive real-time insights. This is especially valuable in sectors requiring extensive data integration, such as defense, healthcare, finance and intelligence, where operational efficiency and decision-making speed are critical. In the government sector, Palantir is aligning its AI strategy with U.S. defense priorities. Its work in high-profile initiatives, such as the Department of Defense's Open DAGIR project, highlights its ability to modernize military operations through AI-driven solutions where data interoperability and real-time decision-making capabilities are imperative. These capabilities solidify Palantir's position as a key player in the defense sector. In the commercial space, Palantir's AIP boot camps — providing hands-on experience to over 1,000 companies — have proven instrumental in customer acquisition. Boot camps showcase the platform's capabilities and demonstrate its adaptability across logistics, manufacturing and supply chain management. Palantir's core customer base comprises businesses seeking tailored AI/ML services, particularly large government and corporate clients willing to invest heavily in its systems. This has generated solid revenues, registering a 21.3% CAGR from 2020 to 2024. Rising AI workloads are significantly increasing traffic between data centers, necessitating that the telecom industry boost investments in higher-capacity interconnects. This surge is fueling widespread upgrades across optical transport networks, which are essential for efficiently handling the surging data movement driven by AI operations. The exponential growth in AI results in massive data generation and processing, and complex AI models — especially large language models (LLMs) and generative AI systems — are increasingly reliant on ultra-fast, low-latency data transmission infrastructure. As a result, there is mounting pressure on data center operators to upgrade their interconnectivity with cutting-edge technologies. Consequently, demand for Coherent's datacom products, particularly high-speed optical transceivers, has seen a substantial upswing due to this AI-driven infrastructure transformation. Coherent's optical transceivers play a critical role in enabling high-bandwidth, low-latency communication between graphics processing units, AI accelerators, and storage systems, components vital to AI model training and inference at scale. In particular, shipments of 800G transceivers have increased meaningfully, driven by strong and growing demand from hyperscalers like Google, Amazon, Microsoft and Meta, all of which are aggressively expanding their AI capabilities. These transceivers enable faster connectivity within data centers, facilitating parallel processing and real-time inference operations across distributed compute clusters. Furthermore, Coherent's transceivers are not only helping manage current AI workloads but are also paving the way for next-generation data center architectures. Their products are designed to handle the increasing complexity and scale of AI model deployments, making them indispensable for hyperscale customers looking to future-proof their infrastructure. As the AI revolution accelerates, Coherent's role in delivering the optical hardware backbone of AI computing continues to grow in strategic importance, making it a key beneficiary of the global pivot toward intelligent, high-performance digital infrastructure. The Zacks Consensus Estimate for Palantir's current year sales and EPS indicates year-over-year growth of approximately 37% and 44%, respectively. This indicates a solid performance trajectory, with EPS estimates trending upward over the past 30 days, signaling increased optimism from analysts about Palantir's continued profitability and operational leverage, particularly as demand for its AI-driven platforms accelerates. Image Source: Zacks Investment Research In comparison, Coherent's current year sales are projected to grow about 22.6% year over year, a notable figure though slightly more modest than Palantir's top-line growth. However, Coherent stands out more prominently on the bottom line, with EPS expected to rise by over 100%, outpacing Palantir's EPS growth rate by a considerable margin. Like Palantir, EPS estimates for Coherent have also been trending higher over the past 30 days, reflecting growing confidence in its earnings recovery, particularly amid the AI-fueled surge in demand for high-speed optical components and data center infrastructure. Image Source: Zacks Investment Research COHR is currently trading at a forward 12-month P/E ratio of 19.13X, which is well below its 12-month median of 30.45X, indicating a potential undervaluation. In contrast, PLTR holds a much higher forward 12-month P/E ratio of 191.04X, though still below its median of 225.63X. While both stocks are trading at a discount to their historical valuations, Coherent appears far more attractively priced from a valuation standpoint, suggesting greater room for multiple expansion, especially given its accelerating earnings growth tied to AI infrastructure demand. While both Palantir and Coherent are benefiting from the AI boom, Coherent appears to offer more near-term upside. Its critical role in AI infrastructure, surging demand for high-speed optical components, stronger projected EPS growth, and significantly lower valuation multiple make it a more attractively priced AI play. Palantir's software leadership is compelling, but Coherent's combination of strategic relevance, earnings momentum, and undervaluation gives it the edge for investors seeking upside potential. COHR and PLTR carry a Zacks Rank #3 (Hold) each at present. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Coherent Corp. (COHR) : Free Stock Analysis Report Palantir Technologies Inc. (PLTR) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research
