Latest news with #PalantirTechnologiesInc.
Yahoo
a day ago
- Business
- Yahoo
Palantir Investors Unfazed by Sky-High Valuation as Stock Surges
(Bloomberg) -- Palantir Technologies Inc.'s breakneck rally shows no sign of letting up as investors remain captivated by its artificial intelligence promise despite one of the most expensive valuations among US stocks. Where the Wild Children's Museums Are Billionaire Steve Cohen Wants NY to Expand Taxpayer-Backed Ferry The Global Struggle to Build Safer Cars At London's New Design Museum, Visitors Get Hands-On Access LA City Council Passes Budget That Trims Police, Fire Spending Shares of the data-analysis software company closed at a record for a third consecutive day Tuesday, pushing their gain for the year to 76%. While that's good enough for second-best on the S&P 500 Index, it has Palantir trading at a staggering 205 times projected earnings over the next 12 months, a hefty premium to the broader market's multiple of 22 times. 'You're starting to see almost like a Tesla effect where valuations don't really matter because there are these true believers in the company,' said Paul Marino, chief revenue officer at Themes ETFs. Those investors see 'opportunities with everything that's going on in the world today, whether that be on the defense side, whether that be on the transaction side, data side or AI side.' Palantir's cult-like momentum rally — which follows a 340% gain in 2024 and a rise of 167% in 2023 — stands in sharp contrast to a lukewarm reception from Wall Street analysts. The stock has only eight buy equivalent ratings and is dominated by 16 holds, with five sells, making it one of the lowest rated S&P 500 stocks, according to data compiled by Bloomberg. But bullish investors say the Street is overlooking a company poised to benefit from the current geopolitical and macroeconomic backdrop. Palantir works with the US military, which has doubled its use of the Maven AI system, and intelligence agencies. It recently added NATO as a customer and is partnering with Fannie Mae to launch an AI-powered crime detection unit. It's also building out its commercial and international clients, both large potential growth areas. Palantir's rebound from April has been underscored by a broader market pivot as investors navigate Trump's on-again, off-again tariff rhetoric and search for companies offering relative safety, including those that can show solid future growth. Palantir forecasts sales will rise to $3.9 billion for the calendar year 2025, a 36% increase from the previous year, and will continue to grow. This year's free cash flow is forecast to top $1.5 billion, a more than 30% increase on the year. 'The market is having capital flow back into areas of the market that they believe could have idiosyncratic growth,' said David Wagner, portfolio manager at Aptus Capital Advisors LLC. 'And Palantir fits that bill if you could stomach the valuation.' The recovery in technology stocks has shifted toward software and away from hardware, also giving Palantir a boost. It has also become a beneficiary of Elon Musk's DOGE effort to cut federal spending; the company has continued to land US government contracts during the Trump administration. In another comparison to Tesla, the stock has likely gotten a lift from the retail crowd. In the last week, it was the third most active behind Tesla and Nvidia Corp., according to data from Interactive Brokers. Palantir has stayed in the third-place spot for much of the year, according to Steve Sosnick, chief strategist at Interactive Brokers. Of course, stocks that have rapid rallies like Palantir can get hit hard on the downside — it shed more than 40% from a February peak through the early April nadir, mirroring some of the selling seen in other big technology shares. In addition to middle-of-the-road ratings, Wall Street analysts think the current rally has gotten ahead of itself. The average price target of about $103 implies more than 20% downside from where shares currently trade. Palantir also has an increasingly high bar to clear to keep the stock grinding higher — anything short of outperformance could weigh on shares, as was seen in the brief selloff following last quarter's earnings report. 'They have to deliver' to keep momentum going forward, said Ted Mortonson, managing director at Robert W Baird & Co. 'They cannot have any hiccups.' Tech Chart of the Day Nvidia Corp. rallied on Tuesday to reclaim the title of the world's largest company after surpassing Microsoft Corp. The semiconductor giant, the Windows software maker and Apple Inc. have been locked in battle in recent months, vying for the title of the most valuable firm by market cap. Top Tech Stories CrowdStrike Holdings Inc. shares fell after the cybersecurity company projected revenue for the current quarter that trailed estimates. Joshua Kushner's Thrive Capital and investment firm Capital Group have in recent months visited China to learn about its AI industry, joining a growing number of US investors rekindling interest in the country after DeepSeek's advances stunned Silicon Valley. Manus unveiled a text-to-video generation feature, entering a competitive segment populated by rivals from OpenAI to China's Alibaba Group Holding Ltd. and Tencent Holdings Ltd. Broadcom Inc. began shipping a new version of its data center switch chips that can boost the efficiency of AI accelerators, aiming to take a bigger role in the booming market for artificial intelligence computing. Earnings Due Wednesday Earnings Premarket: Sprinklr Earnings Postmarket: MongoDB Descartes Systems Verint --With assistance from Subrat Patnaik. YouTube Is Swallowing TV Whole, and It's Coming for the Sitcom Millions of Americans Are Obsessed With This Japanese Barbecue Sauce Is Elon Musk's Political Capital Spent? Trump Considers Deporting Migrants to Rwanda After the UK Decides Not To Mark Zuckerberg Loves MAGA Now. Will MAGA Ever Love Him Back? ©2025 Bloomberg L.P.
Yahoo
29-04-2025
- Business
- Yahoo
Palantir Technologies Inc. (PLTR) Exceeds Market Returns: Some Facts to Consider
The most recent trading session ended with Palantir Technologies Inc. (PLTR) standing at $114.70, reflecting a +1.71% shift from the previouse trading day's closing. The stock outpaced the S&P 500's daily gain of 0.06%. At the same time, the Dow added 0.28%, and the tech-heavy Nasdaq lost 0.1%. Coming into today, shares of the company had gained 31.37% in the past month. In that same time, the Computer and Technology sector lost 5.52%, while the S&P 500 lost 4.29%. Market participants will be closely following the financial results of Palantir Technologies Inc. in its upcoming release. The company plans to announce its earnings on May 5, 2025. The company's upcoming EPS is projected at $0.13, signifying a 62.5% increase compared to the same quarter of the previous year. Meanwhile, our latest consensus estimate is calling for revenue of $862.89 million, up 36.03% from the prior-year quarter. Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $0.55 per share and revenue of $3.77 billion. These totals would mark changes of +34.15% and +31.62%, respectively, from last year. Any recent changes to analyst estimates for Palantir Technologies Inc. should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability. Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system. The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 1.37% downward. As of now, Palantir Technologies Inc. holds a Zacks Rank of #5 (Strong Sell). Investors should also note Palantir Technologies Inc.'s current valuation metrics, including its Forward P/E ratio of 204.31. This represents a premium compared to its industry's average Forward P/E of 26.08. We can additionally observe that PLTR currently boasts a PEG ratio of 6.51. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Internet - Software industry had an average PEG ratio of 2.19 as trading concluded yesterday. The Internet - Software industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 90, which puts it in the top 37% of all 250+ industries. The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1. Make sure to utilize to follow all of these stock-moving metrics, and more, in the coming trading sessions. 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 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
Bloomberg
07-03-2025
- Business
- Bloomberg
Palantir Is Delivering AI-Laden Trucks to the Army
Palantir Technologies Inc. is delivering mobile battle stations to the US Army as part of its $178 million Titan contract — a milestone for the data analysis giant in its work with the military, and a signal of software's growing importance in modern warfare. The product, developed with subcontractors including Anduril Industries Inc. and Northrop Grumman Corp., looks from the outside like a rugged military truck. Inside, it has the feel of a work space, complete with flip-down desks, multiple screens and servers.
