Translated material
"Haters suffer." How Palantir reported
Palantir shares, one of the favorite companies of private investors, are growing by 5.4%: the company associated with the US intelligence agencies reported an increase in revenue by 48% - up to more than $ 1 billion against expectations of $ 939 million. The company referred to the “amazing impact” of artificial intelligence technologies on its business.
- The growth turned out to be especially strong in the United States: sales increased by 68% to $ 733 million, of which $ 426 million were for American government agencies (plus 53%). CEO Alex Karp noted that breakthroughs in the field of AI, including the development of language models and specialized chips, contributed to business growth. Palantir also increased the revenue forecast for the whole year to $ 4.14–4.15 billion, while analysts previously expected $ 3.91 billion.
- Palantir has been playing the role of a key contractor of the US government for a long time, working with both the US Armed Forces and with the Armed Forces of the Union countries, including Ukraine, as well as collaborating with new startups in the field of defense technology.
- During the quarter, the company strengthened its relationship with the Pentagon, concluding new agreements with the US space forces and the American army, the company's leaders during the telephone conference after the publication of the results said.
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Over the past year, Palantir shares have grown by more than 500% - due to the high expectations of investors, an increase in demand for AI and an increase in the market share in both the private and in the public sector.
But Wall Street has long been suspicious of the rapid increase in Palantir. More than twice as many analysts are assigned to the company's shares of the rating “Sell” or “Keep” than “Buy”. Its forecast P/E is 229 - this is more than twice as high as the second in the cost of the technological company - Crowdstrike Holdings.
Analysts who have a positive look at the company's shares indicate the rapid growth of financial indicators.
- GIL LURI, head of the DA DAVIDSON IT study department, notes that Palantir revenue growth this year promises to be the highest among more than 100 software development companies that he tracks. Palantir also has the highest expected free cash flow with a profitability of 42% - this is a very high indicator.
- Jim Warden, Investment Director of Wealth Consulting, says that Palantir can be in the Apple moment, as when the iPhone first appeared.
Karp himself completed the performance following the report by the appeal to retail investors, thanking them for their support. “Stop listening to all the haters. They suffer, ”he said.