Sinusoid of Palantir
The software company Palantir has gone through interesting stages since its debut on the stock exchange in September 2020. First, its shares climbed from $9.5 to $39, a more than 300% increase, and then fell below $7 as inflation and interest rates rose. Because of this sinusoid, she won fans, but also haters. Those who completely wrote off Palantir may regret their decision today. Palantir shares have already gained +178.7% this year. With this increase, Palantir ranks among the 50 highest-grossing stocks for the first half of the year.
This increase was mainly caused by the announcement of surprisingly strong results, after which the company’s shares rose by 33%. Investors were pleased not only by the solid growth of sales by 18% and the company’s profitability, but above all by the management’s optimistic outlook and its comments regarding AIP’s new software platform focused on artificial intelligence. It should record an unprecedented demand from customers.
Messi of artificial intelligence
In May, we included Palantir among 3 forgotten growth stocks that can do well again. Time shows that he is indeed doing well and it looks like his sleepy ride could continue.
Wedbush analyst Dan Ives said of Palantir that the company is well positioned to gain market share in both commercial and government analytics software. He assigned an “Outperform” rating to the company’s shares and set a target price of $25, which is a 40% upside to the current market price ($17.81). This price is based on the assumption that the company will reach $5 billion in revenue in 2027. Shares of Palantir responded to this analyst report by rising +6.4% in extended trading.
“Palantir has built an AI fortress that is second to none and is poised to become a major player in the AI revolution over the next decade,” Ives wrote in a note titled “The Messi of AI.”
“We believe Palantir has a generational opportunity to capture a significant share of the $800 billion TAM [total addressable market] while limitless AI applications redefine business processes across sectors,” he said. In recent months, the company has layered a new AI layer on top of its existing software, which it calls AIP, for Artificial Intelligence Platform.”