Also, its revenue, billings, and free cash flow exceeded Wall Street’s expectations in the quarter, and its gross margin improved. Notably, the US commercial business significantly contributed to the solid performance during the quarter, as revenue in the segment grew 70% year on year and 12% sequentially. Looking ahead, the company expects the US commercial business to grow at least 40% in 2024. A minor negative was that revenue guidance for the next quarter missed analysts’ expectations. Cloud software developer Asana also went public via direct listing on Wednesday. 12 Wall Street research analysts have issued “buy,” “hold,” and “sell” ratings for Palantir Technologies in the last twelve months.
Palantir was named one of CNBC’s Disruptor 50 companies seven times, most recently ranking No. 34 in 2019. Karp’s letter was a less-than-subtle jab at Facebook, where Thiel made much of his fortune and still sits on the board. Through his various investing entities, Thiel is Palantir’s largest shareholder.
New Rank-Based ScoringMarketRank™ is calculated by averaging available category scores (with extra weight given to analysis and valuation), then ranking the company’s weighted average against that of other companies. Do you want to know what moves the stocks you care about? Add them to your StockStory watchlist and every time a stock we cover moves more than 5%, we provide you with a timely explanation straight to your inbox. In any case, this is just to get a sense of the magnitude of Palantir’s potential.
- U.S. commercial growth came in at 33%, showing just how valuable Palantir is proving to private companies and not just government agencies.
- The $10 billion estimate is based on one analyst, and revenues could be very, very different.
- If Palantir executes well over the next couple of years, the firm could potentially bag additional mandates as the Army builds out TITAN further.
- To see all exchange delays and terms of use please see Barchart’s disclaimer.
- In the more immediate future, Palantir will likely benefit from being included in the S&P 500 (SP500) following a fourth straight quarter of GAAP profitability.
- A reference price was set by the NYSE at $7.25, below the $10 price many expected.
Revenue growth is accelerating from 2019, when the company reported a 25% increase to $742.6 million. For 2021, Palantir said it expects revenue growth of greater than 30%. The NYSE gave a reference price on Tuesday of $7.25 a share, though no stock changed hands at that level. It traded as high as $11.42 on Wednesday before dropping below its opening price.
Russell 2000 Futures
To me, there’s no doubt that Palantir is a future mega cap in the making. Though shares are still getting diluted, SBC continues to trend down and now constitutes around 20% of revenues. For the next quarter, the company expects to achieve revenue of between $599 – $603 million and to maintain GAAP profitability. In the third quarter, it expects revenue to rise about 47%, to around $278 million to $280 million. For 2020, it expects revenue of about $1 billion, up 42%.
Since then, PLTR stock has increased by 52.2% and is now trading at $26.14. Users are able to aggregate data from hundreds of inputs and funnel them into a single view for rapid decision-making and execution. The tool, which looks for and analyzes hidden patterns in deep data sets, has been used for “predictive policing” and has drawn some criticism because of it. Palantir’s shares are very volatile and over the last year have had 43 moves greater than 5%.
I’m not saying this is going to happen, but applying a 36% CAGR to Palantir’s $2.2 billion in annual revenues over ten years would have the company taking in $50 billion a year. Revenues for the full year are now expected to be close to $2.2 billion, with adjusted income from operations of over $600 million. U.S. stocks were higher, with the Dow Jones index gaining more than 200 points on Wednesday. We’d like to share more about how we work and what drives our day-to-day business.
Palantir Analyst Data
The NYSE price is a guide for investors but does not dictate how the stock will open. Palantir Technologies’ stock is owned by a variety of institutional and retail https://www.investorynews.com/ investors. (PLTR) raised $0 in an initial public offering (IPO) on Wednesday, September 30th 2020. The company issued 257,100,000 shares at $0.00 per share.
The company is scheduled to release its next quarterly earnings announcement on Monday, May 13th 2024. Palantir Apollo is an operating system designed to give continuous delivery and deployment of safe, secure Internet access across all operating environments. The system is 1 of 5 recognized by the Department of Defense as a Mission Critical National Security System and used by businesses and organizations for autonomous software deployment. Among its advantages, the system can speed up the development of new software by as much as 50% simply by securing access to sensitive information and networks.
Company Profile
James Foord is an economist by trade and has been analyzing global markets for the past decade. He leads the investing group The Pragmatic Investor where the focus is on building robust and truly diversified portfolios that https://www.day-trading.info/ will continually preserve and increase wealth. Joint the Pragmatic Investor today to get insight into stocks with high return potential. On the other hand, part of Palantir’s growth depends on international contracts.
Palantir Past Events
Palantir has strong secular tailwinds as the AI/ML market is expected to grow rapidly due to the exponential increase in data harvested by organizations. Palantir was co-founded by billionaire and Trump ally Peter Thiel, an early investor in Facebook (FB) and a co-founder of PayPal (PYPL). The two other co-founders are Karp and Stephen Cohen, the company’s president.
Is Zillow (Z) Stock on the Brink of Death? This Short Seller Thinks So.
Furthermore, the company generated a cash flow of $140 million and has $3.3 billion in cash. The way I see it, it’s also only a matter of time before shares outstanding begin to trend down, not up. The company will float shares from existing holders and let the market determine the price per share. A reference price was set by the NYSE at $7.25, below the $10 price many expected. As a result, the private market valuation falls to about $16 billion, from near $20 billion. The challenge for Palantir is convincing investors that it’s more of a high-growth tech company than a low-margin consulting services firm.
According to this report from MarketsandMarkets, the AI market will grow at a whopping CAGR of 36.8% in the next 10 years. If this is indeed how the market will evolve, then Palantir could quickly be taking in tens of billions of dollars in revenue by 2030. Revenues came in at $558,159 million, growing 17% YoY.
Upgrade to MarketBeat All Access to add more stocks to your watchlist. Today the company builds and deploys solutions for its clients based on three primary offerings. These are Palantir Gotham, Palantir Apollo, Palantir Foundry, and Palantir Metropolis. The goal is to generate alpha, or a competitive https://www.forex-world.net/ advantage, for its clients so they can succeed in a rapidly changing environment. Investors who bought $1,000 worth of Palantir’s shares at the IPO in September 2020 would now be looking at an investment worth $2,488. Hype and emotions are powerful catalysts, and the market is not always rational.