Latest news with #Peter Thiel
CNA
6 days ago
- Business
- CNA
Palantir shares jump as soaring AI demand powers forecast upgrade
Palantir Technologies shares rose 5 per cent before the bell on Tuesday, after strong demand for its AI-powered services across governments and commercial businesses prompted an increase in its annual revenue forecast. Investors have been betting big on the data analytics and defense software company's military-grade artificial intelligence tools and services, which have propelled its shares to more than double in value this year, making them the best performer on the S&P 500 index through last close. "Palantir's staggering growth is showing no signs of slowing... and (its) ability to grow at scale has been underestimated by a large cohort of the market," said Matt Britzman, senior equity analyst at Hargreaves Lansdown. The company raised its annual revenue forecast for the second time this year and above Wall Street estimates. Sales to the U.S. government jumped 53 per cent to $426 million, representing more than 42 per cent of the total second-quarter revenue of about $1 billion. Last week, the U.S. Army said it might spend up to $10 billion on Palantir's services over the next decade. The Denver, Colorado-based company, co-founded by Peter Thiel, expects expenses to rise significantly in the third quarter due to seasonal hiring amid rising competition among industry leading tech firms to poach top talent, as businesses rapidly look to adopt AI. The stock trades at over 200 times its 12-month forward earnings estimates, compared with AI giant Nvidia's 34.81 and S&P 500's 27.44. Jefferies analysts cautioned that there is a "disconnect between valuation and achievable growth". At least six brokerages raised their price targets on the stock after the results.
Reuters
6 days ago
- Business
- Reuters
Palantir shares jump as soaring AI demand powers forecast upgrade
Aug 5 (Reuters) - Palantir Technologies (PLTR.O), opens new tab shares rose 5% before the bell on Tuesday, after strong demand for its AI-powered services across governments and commercial businesses prompted an increase in its annual revenue forecast. Investors have been betting big on the data analytics and defense software company's military-grade artificial intelligence tools and services, which have propelled its shares to more than double in value this year, making them the best performer on the S&P 500 (.SPX), opens new tab index through last close. "Palantir's staggering growth is showing no signs of slowing... and (its) ability to grow at scale has been underestimated by a large cohort of the market," said Matt Britzman, senior equity analyst at Hargreaves Lansdown. The company raised its annual revenue forecast for the second time this year and above Wall Street estimates. Sales to the U.S. government jumped 53% to $426 million, representing more than 42% of the total second-quarter revenue of about $1 billion. Last week, the U.S. Army said it might spend up to $10 billion on Palantir's services over the next decade. The Denver, Colorado-based company, co-founded by Peter Thiel, expects expenses to rise significantly in the third quarter due to seasonal hiring amid rising competition among industry leading tech firms to poach top talent, as businesses rapidly look to adopt AI. The stock trades at over 200 times its 12-month forward earnings estimates, compared with AI giant Nvidia's (NVDA.O), opens new tab 34.81 and S&P 500's 27.44. Jefferies analysts cautioned that there is a "disconnect between valuation and achievable growth". At least six brokerages raised their price targets on the stock after the results.
Yahoo
26-07-2025
- Business
- Yahoo
Is Opendoor Stock a Buy, Sell, or Hold in July 2025?
Opendoor (OPEN) has become the latest meme stock phenomenon, surging 350% in the past month and 100% since hedge fund manager Eric Jackson began promoting it on social media as a potential '100-bagger.' The stock rocketed from $0.50 to highs above $4.90 before falling to the $2.40 level. This explosive rally appears to be driven primarily by retail speculation and social media hype, rather than by fundamental improvements. High short interest at 20.7% of its float has created a classic short squeeze scenario, amplified by social media momentum and Jackson's bullish calls, which cite expense optimization efforts. More News from Barchart Billionaire Peter Thiel is Betting Big on Stablecoins. Should You Buy the "MicroStrategy of Ethereum," Too? This Former AI Underdog Might Be the Next Nvidia 2 Recession-Proof Dividend Stocks to Buy for the Second Half of 2025 Tired of missing midday reversals? The FREE Barchart Brief newsletter keeps you in the know. Sign up now! However, OPEN stock remains more than 90% below its 2021 peak of $39.24, reflecting underlying business challenges in the capital-intensive iBuying model. No meaningful catalysts for news or operational improvements have justified the parabolic move. While Jackson points to profitability optimization, Opendoor still faces structural headwinds from higher interest rates, reduced housing turnover, and persistent cash burn. The current rally exhibits classic characteristics of meme stocks: massive volatility, retail-driven momentum, and a disconnection from fundamentals. Is Opendoor Stock a Good Buy Right Now? Opendoor Technologies delivered mixed first-quarter results, demonstrating operational progress despite ongoing challenges in the housing market. The iBuying platform reported $1.2 billion in revenue, roughly flat year-over-year, while making strides toward profitability through aggressive cost reduction and strategic pivots. Opendoor's adjusted EBITDA loss narrowed dramatically to $30 million from $50 million in the prior year, primarily driven by a 33% reduction in fixed operating expenses. Opendoor cut $19 million in costs year-over-year while maintaining contribution margins of 4.7%. Management projects positive quarterly adjusted EBITDA of $10 million to $20 million for Q2, marking the first profitable quarter in three years. CEO Carrie Wheeler outlined an ambitious expansion of Opendoor's agent partnership model, flipping from agents bringing customers to Opendoor to the company referring high-intent sellers to vetted agent partners. This channel strategy aims to improve conversion rates while generating asset-light revenue through commission sharing on listings. The pilot program operates across 11 markets, with agents conducting in-home assessments and providing local expertise to enhance the customer experience. Opendoor is maintaining pricing discipline with higher spreads while reducing acquisition volumes. It expects to purchase approximately 1,700 homes in Q2, down from 3,609 in Q1, following a more seasonal approach that concentrates activity in Q1 and Q4. Opendoor ended the quarter with $1 billion in total capital and successfully renewed multiple credit facilities, demonstrating continued lender confidence. The company holds 7,080 homes worth $2.4 billion in net inventory. While management expects contribution margin improvements in the second half of 2025, revenue is projected to decline year-over-year in Q3 and Q4 due to reduced acquisition volumes. The strategy prioritizes margin protection and cost discipline over growth until market conditions improve. Opendoor's focus on operational efficiency and strategic pivots positions it for sustained profitability, though execution remains critical in an uncertain housing environment. What Is the Target Price for Opendoor stock? Analysts expect Opendoor to increase revenue from $5.15 billion in 2024 to $9 billion in 2029. Wall Street estimates its free cash flow to improve to $180 million in 2029, compared to an outflow of $620 million last year. If OPEN stock trades at 15x forward FCF, it could gain close to 70% over the next four years. Of the 10 analysts covering OPEN stock, one recommends 'Strong Buy,' seven recommend 'Hold,' one recommends 'Moderate Sell,' and one recommends 'Strong Sell.' The average OPEN stock price target is $1.14, more than 50% below the current price. The ongoing rally in Opendoor stock appears to be a speculative bubble driven by social media promotion rather than genuine business improvement. The extreme volatility and lack of fundamental catalysts suggest significant downside risk when the momentum inevitably reverses. On the date of publication, Aditya Raghunath did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. This article was originally published on Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
24-07-2025
- Business
- Yahoo
A New Meme Rally Is Revitalizing Koss. Should You Buy KOSS Stock Here?
Koss (KOSS) shares soared nearly 38% at one point on July 23, as retail investors rallied behind the headphone maker, reigniting memories of its past meme stock breakouts. While the short interest in KOSS at roughly 3.5% wasn't nearly as elevated as in the likes of Kohl's (KSS) heading into Wednesday, meme stock enthusiasts flocked into it still purely for a hit of nostalgia. More News from Barchart NVDA Broken Wing Butterfly Trade Targets A Profit Zone Between 150 and 160 Is Opendoor Stock a Buy at New 52-Week Highs? Billionaire Peter Thiel is Betting Big on Stablecoins. Should You Buy the "MicroStrategy of Ethereum," Too? Stop Missing Market Moves: Get the FREE Barchart Brief – your midday dose of stock movers, trending sectors, and actionable trade ideas, delivered right to your inbox. Sign Up Now! The momentum pushed Koss stock to a new year-to-date high of $8.59. However, shares of the Milwaukee-headquartered firm have now retreated back below $6. Koss Stock Remains Super Risky to Own Despite retail momentum on Wednesday, KOSS shares are a highly speculative play at best. At about $6.00 per share, the Nasdaq-listed firm remains vulnerable to manipulation and unexpected price swings. Its small market cap (less than $60 million at writing) means even modest buying pressure can send shares soaring. Financially, Koss is struggling. Revenue has stagnated around $12 million annually, and it posted a net loss of well over $300,00 in its most recent quarter. With negative profit margins and limited growth prospects, Koss stock lacks the earnings strength to warrant ownership. Simply put, for long-term investors, its fundamentals don't support the hype. Wall Street Doesn't Cover KOSS Shares Another red flag that substantiates KOSS's speculative nature is the absence of traditional Wall Street coverage. As of writing, no analysts tracked by Barchart offer price estimates or earnings forecasts for the Milwaukee-headquartered firm, leaving it entirely on the whims of retail traders driving sentiment via social media buzz. Without analyst scrutiny, Koss shares trade more like a momentum vehicle than a company priced on fundamentals. For serious investors seeking transparency and guidance, the lack of coverage is a huge let down. Finally, the past meme-driven rallies in KOSS stock serve as cautionary tales of fleeting frenzy and sharp reversals as well. On the date of publication, Wajeeh Khan did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. This article was originally published on Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
