Why shares of Palantir Technologies shot up as much as 47% this week

Shares of Palantir Technologies (NYSE:PLTR) charged sharply higher this week, by as much as 47.5%, according to data provided by S&P global market information. By the time the market closed Friday, the stock was still up 43.2%.

The catalyst that initially initiated the data analyzes and artificial intelligence (AI) systems pioneer higher were the company’s better-than-expected results. However, the stock got an extra boost as Wall Street scrambled to update its models and issued a slew of new, higher price targets.

Blockbuster results

For the fourth quarter, Palantir posted revenue of $608 million, up 20% year over year (and 9% sequentially). The results were driven by robust commercial revenues in the US, which increased by 70%.

The company also produced record net income, marking its fifth consecutive quarter of profit under Generally Accepted Accounting Principles (GAAP). This resulted in adjusted earnings per share (EPS) of $0.08.

Revenue was well above Wall Street expectations, as analyst consensus estimates called for revenue of $602.4 million and adjusted earnings per share of $0.08.

The company’s guidance also added to the momentum. For the coming year, Palantir expects revenue to rise 20% year-over-year to $2.66 billion at the midpoint of its expectations. Management expects continued strong US commercial revenue growth, with expectations of at least A growth of 40%, but the company has a habit of providing conservative guidance, which could make results even more bullish.

Wall Street is piling up

Shortly after Palantir announced its results, Wall Street analysts rushed to update their financial models, resulting in a cascade of price targets and two upgrades.

Wedbush analyst Dan…

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