Palantir stock up 84% year to date, driven by strong earnings and AI tools

From Nasdaq: 2024-08-22 08:00:00

Palantir Technologies (PLTR) has seen an 84% increase in shares year to date, driven by better-than-expected second-quarter earnings and the rollout of new AI tools. With total revenue up 27% to $678 million, the company’s U.S. commercial segment is showing significant growth, offering stability and predictability over government contracts.

The AI industry has seen hardware giants benefit, but Palantir’s integration of generative AI tools into its software could change the narrative. The company’s AI Platform (AIP) has already attracted major clients like AARP and Panasonic, showcasing the potential for growth in the private sector. Management reports “unprecedented” demand for these services.

Despite Palantir’s strong track record in government contracting, rising competition in the private sector and an overvaluation concern pose challenges. With a forward P/E of 91, the stock may be priced for perfection and could underperform in the next three years. Investors should weigh the risks before considering Palantir as an investment.



Read more at Nasdaq: Where Will Palantir Stock Be in 3 Years?