So will the rally continue or is a decline looking more likely in the near term? This historical pattern reflects 47 out of 74, or about 64% chance of a drop in Palantir Technologies stock over the next month. See our analysis Palantir Stock Chance Of Decline for more details. Palantir has been investing in creating a product that’s easier to sell and deploy. It wants investors to concentrate on what the company calls its contribution margin, or the revenue left after subtracting the costs it bears to generate sales.
“Many of the world’s most vital institutions rely on the software platforms that we have built,” Karp said. “Our software is used to target terrorists and to keep soldiers safe,” Chief Executive Alex Karp said in the Palantir IPO filing. “If we are going to ask someone to put themselves in harm’s way, we believe that we have a duty to give them what they need to do their job.” Upgrade to MarketBeat All Access to add more stocks to your watchlist.
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Overall, Snowflake’s Revenues should grow at a higher rate compared to Palantir, considering its SaaS-based model which can scale to a large base of customers with much less customization. Palantir, on the other hand, needs engineers to adapt its tools to xm group review the unique needs of customers. Snowflake had over 3,100 customers as of July 2020, compared to Palantir which had about 125 customers as of its last fiscal year. The software finds applications in industries ranging from health care to manufacturing.
- This could give investors some confidence that the company is diversifying its revenue streams to an extent within the government space to areas that have lower transparency and perception issues.
- The goal is to generate alpha, or a competitive advantage, for its clients so they can succeed in a rapidly changing environment.
- How do the companies compare in terms of business models, revenue growth rates, and margins?
The rapid adoption of artificial intelligence (AI) has been gathering steam over the past year, but there’s been a notable uptick in AI-related developments over the past several weeks. Gain deeper insights into company revenues with a detailed analysis of revenue sources. Explore the updated Options feature, providing in-depth data, and a 3D viewing option. Palantir said in an updated filing last week that it expects to record growth this year of 42%, to close 2020 with $1.06 billion in revenue.
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Per the Trefis machine learning engine which analyzes historical stock price movements, PLTR stock only has a 36% chance of a rise over the next month (21 trading days). It wasn’t just the growing secular tailwinds of generative AI that drove these stocks higher. Three of the four recently reported quarterly financial results that easily surpassed investor expectations.
Snowflake posted a Gross Profit Margin of 62% for the first six months of FY’21, with Operating Margins standing at -72%. Palantir’s Gross Margins stood at about 72% over the first six months of 2020, with Operating Margins coming in aafx broker at about -35%. The challenge for Palantir is convincing investors that it’s more of a high-growth tech company than a low-margin consulting services firm. The company has only 125 customers, spending on average $5.6 million in 2019.
Information is provided ‘as-is’ and solely for informational purposes, not for trading purposes or advice, and is delayed. To see all exchange delays and terms of use please see Barchart’s disclaimer. The company is scheduled to release its next quarterly earnings announcement on Monday, May 13th 2024.
PLTR technical analysis
This impressive outlook is likely based on the high margins it earns on incremental revenue. And Palantir’s adjusted free cash flow margin currently sits at an impressive 50%, which reflects a highly profitable business, even by software industry standards. Snowflake stock has more than doubled from its IPO price of $120 to about $250 currently, valuing the company at about $70 billion. Palantir, on the other hand, hasn’t moved too much since its listing and is valued at about $15 billion. Firstly, the company is growing much faster than Palantir and should also be more profitable in the long-run given its highly scalable delivery model. Palantir is also taking multiple steps to drive commercial segment growth.
For the six-month period ended June 30, Palantir reported revenue of $481.2 million, up 49% from the year-ago period. Also, it reported a net loss of $164.7 million, vs. a loss of $280.5 million in the year-ago period. The NYSE price is a guide for investors but does not dictate how the stock will open. Palantir Technologies saw a increase in short interest in the month of January. 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 daily volume of 67,070,000 shares, the days-to-cover ratio is presently 1.7 days.
Louis Navellier is one of Wall Street’s renowned growth investors. Providing investment advice to tens of thousands of investors for more than three decades, he has earned a reputation as a savvy stock picker and unrivaled portfolio manager. Even as growth invariably slows down once the company matures, this will also likely enable Palantir to “cash the check,” by taking its foot off the growth petal, maximizing profitability. Again, while shares begin to dip after initially soaring 30.8% post-earnings, the latest round of excitement for AI stocks is helping to get PLTR back on track. Although this latest wave of excitement could also soon peter out, locking in gains could prove to be a mistake in hindsight.
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. Over Q1, the commercial sales grew 19% year-over-year to $133 million, well ahead of the 4% growth rate it clocked in the previous quarter. Revenue per commercial customer is also picking up, rising by about 29% compared to last year.
Relative to the current share price of US$16.4, the company appears quite undervalued at a 43% discount to where the stock price trades currently. Valuations are imprecise instruments though, rather like a telescope – move a few degrees and end up in a different galaxy. Through Covid-19, Palantir has been seeing higher traction from the public health space, with its services used to track Covid-19 data from hospitals and to trace the spread of the virus.
Why Palantir Technologies, Arm Holdings, and Other Artificial Intelligence (AI) Stocks Have Skyrocketed 50% or More in February
The Government segment provides solutions to the United States (US) federal government and non-US governments. The firm offers automotive, financial compliance, legal intelligence, mergers and acquisitions solutions. The company was founded by Stephen Cohen, Nathan Dale Gettings, Joseph Lonsdale, Alexander C. Karp, and Peter Andreas Thiel in 2003 and is headquartered in Denver, CO. Namely, a growing number of analysts and commentators are calling for those currently holding PLTR positions in their portfolios to consider taking profit, while the current strength still lasts. As you may know, Palantir has been boosted higher thanks to a strong earnings report.
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 tickmill review of other companies. Get stock recommendations, portfolio guidance, and more from The Motley Fool’s premium services. Some viewed these purchases as a significant vote of confidence from Nvidia.