Home › Forex Trading › Here is What to Know Beyond Why Palantir Technologies Inc PLTR is a Trending Stock April 7, 2025

Here is What to Know Beyond Why Palantir Technologies Inc PLTR is a Trending Stock April 7, 2025

Brandon MarxPosted on Posted in Forex Trading

Army is able to create AI-enabled data solutions to analyze information from multiple data sources, enabling operational efficiencies and optimizing business processes. “We are working together to provide a new generation of defense contractors,” one person involved in organizing the group reportedly said. The three technology stocks in this article are all trying to do whatever they can to recover. After all, we have seen a lot of selling in these names, so a bounce makes sense sooner or later. @CharlesSchwab’s latest STAX report shows the sharpest drop since September.

Palantir Stock Plunges 5%–Valuation and AI Spending Fears Hit Hard

This growth was driven by expansions at existing customers and new acquisitions, reflecting the impact of the AI revolution in both industry and government. Net dollar retention reached its highest level in two years, with further growth potential, previously exceeding 120% in 2021 and 2022. AIP has been the primary driving force of this revenue reacceleration, with renault trade strong adoption in the US commercial segment. AIP’s scalability, interoperability and versatility allow it to quickly be integrated by enterprises. Commercial customers can lever Palantir’s AI and machine learning tools to harness the power of the latest large language models (LLMs) within Foundry and Gotham for near-instant analytics & insights, and productivity & efficiency gains.

Palantir Technologies reported revenues of $827.52 million in the last reported quarter, representing a year-over-year change of +36%. Palantir Technologies is expected to post earnings of $0.13 per share for the current quarter, representing a year-over-year change of +62.5%. The questions on many investors’ minds are whether this is a great time to buy the stock, or is there more downside ahead. Let’s explore the key points current and potential investors need to consider when making this decision.

NASDAQ: PLTRPalantir Technologies Inc Stock

  • We essentially look at how sell-side analysts covering the stock are revising their earnings estimates to reflect the impact of the latest business trends.
  • Net retention has risen to two-year highs, reaching 118% in Q3, as deal expansion continues.
  • One area of uncertainty is how the market opportunity for AI-powered data analytics will evolve.
  • This is not a guarantee of a stock’s performance and it is not financial advice.

US commercial revenue increased 54% YoY and 13% QoQ to $179 million, slightly decelerating from 55% YoY growth in Q2. Palantir guided for US commercial revenue to exceed $687 million, or 50% YoY growth, for FY24, implying Q4 revenue of at least $199 million, or ~52% YoY growth, representing a 2 point deceleration should it meet that target. Despite proving again that it’s one of the only software names with real revenue in the market, Q3’s report pushed the valuation even higher. Due to an outlandish valuation, price momentum may soon be approaching a peak.

Net Retention, RPO Strong, but Watch US Net New Adds

For the next fiscal year, the consensus earnings estimate of $0.70 indicates a change of +25.7% from what Palantir Technologies is expected to report a year ago. It has marketed its AI platform to commercial customers through AI boot camps, where it helps them understand how to apply AI to mission-critical applications. To use Palantir’s services, customers usually enter into one to five-year contracts with the company. In the year ended Dec. 31, 2024, 55% of Palantir’s revenue came from government customers, while the rest came from commercial users.

Research Analysis: PLTR

According to 21 analysts, the average rating for PLTR stock is “Hold.” The 12-month stock price forecast is $78.79, which is a decrease of -15.98% from the latest price. The most significant opportunity for Palantir lies in the ongoing development and adoption of artificial intelligence technologies. According to Statista, the global AI market will be more than $800 billion by 2030, up from $244 billion in 2025. Palantir (PLTR) stock is down from its all-time high in February, but the company is still up over 150% in six months. Kenny Polcari, Slatestone Wealth chief market strategist and host of the Trader Talk podcast, joins Market Domination hosts Julie Hyman and Josh Lipton to discuss Palantir’s stock movement in the context of the broader market.

However, if AI adoption slows or competition intensifies, Palantir’s stock price could face pressure. We essentially look at how sell-side analysts covering the stock are revising their earnings estimates to reflect the impact of the latest business trends. And if earnings estimates go up for a company, the fair value for its stock goes up. A higher fair value than the current market price drives investors’ interest in buying the stock, leading to its price moving higher.

PLTR Stock News Headlines

Palantir Technologies is a strong buy due to its impressive AI software platforms and expanding commercial and non-U.S. Palantir Technologies lblv forex broker review scored higher than 33% of companies evaluated by MarketBeat, and ranked 257th out of 321 stocks in the business services sector. Scores are calculated by averaging available category scores, with extra weight given to analysis and valuation. Palantir Technologies Inc. is an SaaS company focused on AI and big data analytics.

There is a clear deceleration from peak customer acquisition following AIP’s ramp, where net new adds surged from 6 in Q to 41 by Q1, before slowing again. Most importantly, NRR has risen to a two-year high, while RPO is surging, suggesting customer spend could remain elevated for the next few quarters. Over the last four quarters, Palantir Technologies surpassed consensus EPS estimates three times. The company topped consensus revenue estimates each time over this period.

Given the outsized valuation, the I/O Fund is looking for a lower entry in Palantir before adding the stock to our portfolio. Join the I/O Fund’s next webinar on Thursday, November 14th where Knox Ridley, Technical Analyst, will discuss the firm’s buy zones and targets for AI leaders. The facts discussed here and much other information on Zacks.com might help determine whether or not it’s worthwhile paying attention to the market buzz about Palantir Technologies. However, its Zacks Rank #3 does suggest that it may perform in line with the broader market in the near term. You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer.

U.S. commercial revenue grew 54% YoY in Q4, driven by AIP deployment and 32 $10 million+ deals … Palantir Gotham was originally intended for the US intelligence community as a counter-terrorism tool but it has since been deployed by state and local governments as well as private enterprises as a global decision-making tool. 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. Gotham primarily serves the defense industry, while Foundry focuses on the commercial sector.

Trading Services

That was most of the shares he had authorized to sell, with only an additional 310,000 shares left to be sold as part of the 10b5-1 plan. Palantir Technologies Inc PLTR is flexing both its tech muscles and stock chart, jumping 9% after news broke that NATO has officially acquired its AI-enabled Maven Smart System NATO (MSS NATO) for mil… Originally intended as a tool for the Federal Government, the company has since expanded to serve state and local governments as well as private corporations. The company’s name is based on J.R.R. Tolkien’s Lord of the Rings trilogy. The palanteri are indestructible crystal globes used for seeing across great distances. Discover which analysts rank highest on predicting the directional movement of PLTR.

Cash flow margins were bonkers in Q3 — operating cash flow was nearly $420 million, or a 58% margin, while adjusted free cash flow was $435 million, a 60% margin. This was a large step up from cash flow margins in the low-20% range in the first half of 2024. Our experts have identified 7 Zacks Rank #1 Strong Buy stocks poised for potential breakout in the coming weeks.

  • Major government deals, such as a $618.9m contract extension with the US Army in January 2025, can support long-term growth and strengthen trader confidence.
  • Given the outsized valuation, the I/O Fund is looking for a lower entry in Palantir before adding the stock to our portfolio.
  • During its early months on the stock market, Palantir’s stock price experienced significant volatility.

Believe it or not, we just completed a good week for the U.S. stock market. The S&P 500 rose 5.7% through Friday’s close from a week earlier, with three-quarters of component stocks showing gains. Palantir delivered $1.25 billion in 2024 free cash flow at a 44% margin, with only $12 million in CapEx.

First, you can buy physical shares in the company through the Nasdaq Global Select Market, where it’s listed. In this case, investing in Palantir stocks means you will own a share, or shares, in the company. This can be considered a long-term investment, as you’re hoping for the price to rise over time. Like other growth stocks, Palantir is sensitive to broader economic conditions. High inflation, rising interest rates, or bittrex review a downturn in the tech sector could potentially influence lower demand for high-valuation stocks. In contrast, easing monetary policies or increased institutional investment in AI-focused equities could provide upward momentum.

Learn about Palantir (PLTR), with trading hours and how to trade Palantir CFDs.

One of the key questions surrounding Palantir is what impact will threatened government spending cuts and the Elon Musk-led DOGE (Department of Government Efficiency) have on its revenue growth. Palantir generated $1.25 billion in free cash flow in FY24, with a 44% FCF margin and 29% revenue growth. U.S. commercial revenue surged 54% in FY24, driven by AIP bootcamps and scalable, production-g… It is also worth mentioning that while Palantir’s government business is already massive, there are ample opportunities to grow that business.