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Palantir Technologies (
$NYSE:PLTR) recently reported disappointing Q2 results and forward guidance, sending shares plunging on the news.
However, we believe that the long-term outlook for the stock remains bullish and, therefore, view the dip as a great opportunity to buy shares. In this article, we share our thoughts on the specifics of PLTR’s Q2 and our outlook for the stock moving forward. PLTR Stock Q2: The Bad The bad news for PLTR from its Q2 report and forward guidance was very straight forward: Its -$0.01 adjusted earnings per share and its $437 million revenue numbers both missed Wall Street estimates. The miss on earnings was driven by higher-than-expected costs in the quarter, which offset strong top-line growth. Specifically, costs related to research and development, as well as sales and marketing, were higher than expected. Looking ahead, Palantir provided guidance for the full year that was below analyst expectations. So, in short, the bad news from Palantir’s Q2 report was that it missed on both earnings and revenue, and provided guidance for the full year that was below expectations. The good news, however, is that the miss on earnings was driven by higher-than-expected costs related to investments in R&D and sales and marketing. These are investments that we believe will pay off for Palantir over the long-term. Looking ahead, we believe that Palantir is well positioned to continue its strong top-line growth. The company’s products are in high demand and it has a large addressable market. In addition, Palantir has a strong competitive position and a large moat around its business. Therefore, we believe that the long-term outlook for the stock remains bullish, and view the recent dip as a great opportunity to buy shares.
Market Reaction
Palantir Technologies is a software company that specializes in data analysis. On Friday, the company’s stock price rose by 5.2% after it released its second-quarter results.
However, the results disappointed investors, and the stock price fell sharply in after-hours trading.
VI Analysis
The fair value of PALANTIR TECHNOLOGIES share is around $21.8, calculated by VI
Line. Now PALANTIR TECHNOLOGIES stock is traded at $9.9, undervalued by 55%. PALANTIR TECHNOLOGIES is a data analytics company that provides software to help organizations make better decisions. The company’s products are used by government agencies and companies in a variety of industries, including healthcare, finance, and manufacturing. PALANTIR TECHNOLOGIES has a strong balance sheet and a history of profitability. The company’s fundamentals reflect its long term potential.
However, the stock is currently undervalued by about 55%.
Summary
Palantir Technologies, a data analytics company, saw its shares plunge on Wednesday after it reported disappointing second-quarter results. “Our second-quarter results reflect solid execution against our plans, but we still have more work to do to achieve our long-term ambitions,” said CEO Alex Karp in a statement. The company’s shares had been under pressure in recent months after a string of executive departures and concerns about its growth prospects. Despite the disappointing results, the company’s shares were up more than 5% in Thursday’s trading, as investors appeared to be betting on a turnaround.
