Palantir Applied sciences Inc. PLTR reported better-than-expected earnings Monday night, but the inventory tumbled 9.25% in after-hours buying and selling.
What Occurred: Regardless of the sturdy outcomes, two well-known analysts are taking very totally different positions on Palantir’s future.
Dan Ives of Wedbush remained firmly bullish. “You may print this press launch off, body it, and put it within the Louvre,” Ives stated throughout an look on CNBC. “I imagine that is going to be a $1 trillion market cap within the subsequent 2 to three years.”
Nonetheless, Brent Thill of Jefferies disagreed. Whereas acknowledging Palantir’s sturdy fundamentals, he remained cautious concerning the firm’s excessive valuation.
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Palantir has now met or exceeded Wall Road’s earnings and income expectations for seven straight quarters. But the corporate’s valuation, which some analysts say displays 65 instances its income, is drawing comparisons to earlier tech high-fliers like Snowflake Inc. SNOW, whose valuations got here again all the way down to earth.
“This can be a retail-driven story,” Thill stated. “There’s not a single institutional investor I speak to that even talks about this.”
Ives pushed again on that view, arguing that institutional skepticism has left many cash managers behind the curve on one of the vital transformative corporations in AI.
Why It is Vital: Palantir posted first-quarter income of $883.86 million, surpassing analyst expectations of $862.83 million. The corporate additionally raised its full-year income steering to between $3.89 billion and $3.90 billion, effectively above earlier projections.
Palantir initiatives second-quarter income between $934 million and $938 million, once more topping analyst expectations. The corporate at present has a market cap of $292.05 billion.
Worth Motion: Palantir shares have gained 64.61% to this point this 12 months and surged 390.96% over the previous 12 months. On Monday, the inventory dipped 0.41% throughout common buying and selling and slid one other 9.25% in after-hours buying and selling, closing at $112.32, in keeping with information from Benzinga Professional.
Analysts have set a consensus worth goal of $69.76 for Palantir, primarily based on enter from 25 companies. Probably the most bullish projection comes from Loop Capital, which issued a $125 goal on March 13, 2025.
The most recent updates from RBC Capital, Morgan Stanley, and DA Davidson common out to a worth goal of $76.67, indicating a possible draw back of 31.74% from present ranges.
In line with Benzinga Edge Inventory Rankings, Palantir boasts a robust progress rating of 86.89%, underscoring its strong efficiency. Click on right here to see the way it compares to different shares.
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Disclaimer: This content material was partially produced with the assistance of Benzinga Neuro and was reviewed and revealed by Benzinga editors.
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