And we more than doubled the number of U.S. commercial deals with [total contract value] TCV of $1 million or more from the fourth quarter in 2022 to 2023. Palantir gets nearly 60% of its revenue from government agencies. In 2022, revenue growth slowed to 24% from 40% in 2021 and 47% in 2020. However, the Jefferies analysts hanging man candlestick said they still have some concerns about Palantir’s valuation since shares are trading at a “23% premium to the large cap average,” so the analysts will “remain on the sidelines.” The challenge for Palantir is convincing investors that it’s more of a high-growth tech company than a low-margin consulting services firm.

1. The company is a creation of Silicon Valley, but has tried to distance itself from the region by moving its headquarters to Colorado and slamming tech’s “engineering elite” in its prospectus.
2. The company is allowing existing shareholders to sell up to one-fifth of their holdings now while hanging onto the rest until the lockup period expires after it reports results for the year ending Dec. 31.
3. Palantir continues to improve on its platform; its Titan release of Gotham offers improved performance, more customized views, and AI integration.
4. Palantir Technologies, Inc. is a holding company, which engages in the development of data integration and software solutions.

The analyst anticipates that subdued demand in the government business segment might have offset strength in U.S. commercial business in the to-be-reported quarter. The software company specializes in data analysis and intelligence tools. It serves government and commercial clients with its data integration and analytics platforms. 13 equities research analysts have issued 1 year price objectives for Palantir Technologies’ stock.

Where Will Palantir Technologies Stock Be in 1 Year?

PLTR stock bulls point to artificial intelligence software as a growth driver. Palantir has already mined the AI opportunity with government customers for intelligence gathering, counterterrorism and military purposes. Palantir stock jumped after it reported fourth-quarter earnings that met estimates while revenue topped Wall Street targets. Management said its “Artificial Intelligence Platform,” rolled out in early 2023, was gaining traction with customers. Palantir estimates that its total addressable market (TAM) is roughly $119 billion and some analysts project revenue to reach $9 billion by 2026.

Company Report

For the coming year, Palantir is guiding for revenue to climb 20% year over year to $2.66 billion at the midpoint of its guidance. Management expects continued strong growth from U.S. commercial revenue, with expectations of at least 40% growth, but the company has a habit of issuing conservative guidance, so the results could be even more bullish. For the fourth quarter, Palantir delivered revenue of $608 million, up 20% year over year (and 9% sequentially). The results were driven by robust U.S. commercial revenue, which soared 70%.

About MarketBeat

Investors may be wondering if it is worth buying Palantir at this valuation, especially considering the stock’s big post-earnings surge. However, the company can justify its sales multiple thanks to the impressive jump in its deal momentum that could eventually help it outperform expectations. Also, as the following chart suggests, Palantir’s forward sales multiple is at a much lower level thanks to the growth it is expected to deliver. We’re already seeing evidence of boot camps helping to significantly compress sales cycles and accelerate the rate of new customer acquisition …

By the time the market closed on Friday, the stock was still up 43.2%. Let’s look at why investors are excited and then check out the catalysts that could send this high-flying tech stock higher over the next year. Palantir is solidifying itself as a top pick to gain exposure to the artificial intelligence revolution that’s underway, according to Wedbush Securities.

Ahead of the Q4 earnings release, four analysts rated the stock a Sell while one assigned a Hold. 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. 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. 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. Palantir’s shares are very volatile and over the last year have had 43 moves greater than 5%. In context of that, today’s move is indicating the market considers this news meaningful but not something that would fundamentally change its perception of the business.

As of January 31st, there was short interest totaling 114,720,000 shares, an increase of 11.9% from the January 15th total of 102,520,000 shares. Based on an average trading volume of 67,070,000 shares, the days-to-cover ratio is currently 1.7 days. MarketBeat has just released its list of 20 stocks that Wall Street analysts hate. These companies may appear to have good fundamentals, but top analysts smell something seriously rotten. The same report also showed that Palantir exceeded analysts’ expectations for revenue by making $478 million versus the expected $470 million.

Palantir Technologies updated its FY 2024 earnings guidance on Monday, February, 5th. The company provided earnings per share guidance of for the period. The company issued revenue guidance of $2.7 billion-$2.7 billion, compared to the consensus revenue estimate of $2.7 billion.

However, documents obtained by The Intercept[82] show that this is not the case. According to these documents, Palantir’s ICM software is considered ‘mission critical’ to ICE. IBD’s Composite Rating combines five separate proprietary ratings into one easy-to-use rating. Now Palantir aims to use generative AI to spur growth in the commercial market. The software maker has expanded into health care, energy and manufacturing. “We think this remarkable growth is a sign of Palantir’s unique position as an enabler of AI-powered data-driven decision-making in a tangible, accessible, and operational way,” the analysts wrote Tuesday.

A minor negative was that revenue guidance for the next quarter missed analysts’ expectations. We are raising our fair value estimate for narrow-moat Palantir to $15 from $13 after the firm reported another strong quarter, with impressive sales growth matched by an increasingly attractive margin profile. Palantir’s AI platform, or AIP, continued to provide an uplift to the firm’s commercial sales as customer interest in Palantir’s AI solutions remained robust.

Shortly after Palantir released its results, Wall Street analysts rushed to update their financial models, resulting in a cascade of price targets and two upgrades. The company also produced record net income, marking its fifth successive quarter of profits under generally accepted accounting principles (GAAP). That would be a 47% increase from current levels, which is why investors looking to buy an AI stock right now should consider buying Palantir before it surges higher. It looks like the AI boot camps that Palantir organized last year are translating into more customer wins.

Upon its inception, the company didn’t really have a sales team as its products were priced at a level where its leaders assumed a CEO would need to pitch. This view has changed recently as Palantir now has a sales team, which has led to more efficient data management and sales output. Wedbush analyst Dan Ives increased his https://g-markets.net/ price target to a Street-high $30, which implies upside of 23% — above and beyond this week’s stellar move. Ives seemed to capture the prevailing mood, citing the “off-the-charts commercial success” of Palantir’s Artificial Intelligence Platform (AIP) and the “eye-popping” 70% growth of its U.S. commercial business.

It means, for example, that to get detailed info on someone, all you would need is a name and license plate number and Palantir does the rest. It performs a deep search of all criminal, financial, medical, communication, and clandestine agency records on the target.