Palantir Technologies’ Q3 Earnings: Can the Stock Maintain Its Momentum?
As the market eagerly awaits Palantir Technologies’ third-quarter earnings report, scheduled for release after Monday’s closing bell, analysts are divided on whether the company’s stock can sustain its remarkable growth.
A Surge in Demand for AI Platform
Palantir shares have more than doubled in value this year, driven by strong demand for its Artificial Intelligence Platform. The company’s sales surged 27% year-over-year in the second quarter, leading to better-than-expected results and an upward revision of its full-year guidance.
Analysts’ Skepticism
Despite this impressive performance, only two out of 12 analysts covering Palantir, as tracked by Visible Alpha, expect the stock to continue its upward trend. Their price targets range from $16 to $50, with an average of $27.55, implying a 34% drop from Friday’s closing price of $41.92.
Concerns About Sustainability
The bearish outlook stems from concerns about whether Palantir’s stock can maintain its recent pace of growth. The company’s shares have climbed almost 40% since early September, when S&P Global announced its inclusion in the S&P 500 index.
Q3 Expectations
Consensus estimates predict Palantir will report third-quarter revenue growth of 26% to $704.9 million, with earnings per share of 5 cents, up from 3 cents per share a year earlier. Will the company meet these expectations and prove its skeptics wrong? The market will be watching closely on Monday.
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