Citigroup raised its price target on Palantir (NASDAQ:PLTR) stock to $23 per share ahead of the software company’s earnings.
Unfortunately for the bulls, the stock is already trading ahead of the target. Palantir was due to open at $24 per share, with a market capitalization of over $53.4 billion.
Palantir will report earnings after the market closes on May 6. Analysts expect profits of $84 million, 3 cents per share, and revenue of .
The God Emperor of AI
PLTR stock is already up 36% in 2024 and 200% . What was a proprietary database-based decision stack is now being touted as artificial intelligence (AI).
Palantir started life as a military contractor. CEO Alex Karp recently said Columbia University students protesting Israel’s war with Hamas .
Bears have used the slow natural growth of military contracting to place . The company is worth over 25 times its revenue while delivering growth of just 20% and nominal profits.
However, it’s the commercial side of the business that’s fueling optimism about the stock now. Commercial contracts were 45% of the company’s revenue last year, and if that grows the stock should take off. Our Louis Navillier says the stock is not overvalued and could surge after earnings. Cathie Woods of the ARK Innovation Fund (NYSEARCA:ARKK) agrees.
What’s most promising about Palantir is that it uses defined data sets to create defined outcomes. That means it can deliver a return on a customer investment quickly. Palantir has focused its commercial efforts so far on things like hospital scheduling and advertising.
Thus, Palantir has become a good way for ordinary investors to gauge the temperature of the AI frenzy. Shares rise when AI hype is at a peak, and they fall when investors see disillusionment creeping in.
PLTR Stock: What Happens Next?
Palantir’s stock pattern has been to rise right after earnings, then hold the gains until the next earnings report.
On the date of publication, Dana Blankenhorn did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the 香港六合彩玄机.com Publishing Guidelines.
