Palantir Technologies shares rise despite RBC’s “disappointing” government spending tracker results
August 4, 2022
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Palantir Technologies ($NYSE:PLTR) shares rose on Wednesday even as investment firm RBC said its government spending tracker provided “disappointing” results going into the company’s second-quarter results next week. Analyst Rishi Jaluria, who has an underperform rating on Palantir shares with a $6 price target, noted that the net new value of deals from the U.S. government in the second-quarter was $25M, down 81% year-over-year. Last year, U.S. accounted for 76% of government-related revenue. “While this is disappointing to us regardless, we would point out Palantir’s intra-quarter announcements which suggest expansion activity, including: 2-year $100M contract with the U.S. Army on July 28; 14-month $36M contract with U.S. Army for TITAN on June 28; 1-year $54M expansion with U.S. SSC BMC3 on June 2; and 5-year $90M contract with the Department of HHS on May,” Jaluria wrote in a note to clients. Do you think this will affect PALANTIR TECHNOLOGIES market and earnings in the long term? It’s difficult to say how this will affect Palantir Technologies in the long term. The company’s share price is still up despite the disappointing results from the government spending tracker, which suggests that investors are still confident in the company.
However, if government spending on Palantir’s products and services continues to decline, it could have a negative effect on the company’s earnings and market share in the long term.
Palantir stock opened at $11.1 and closed at $11.2, up by 2.6% from the previous day’s closing price of $10.9.
Company’s fundamentals reflect its long term potential, below analysis on PALANTIR TECHNOLOGIES are made simple by VI app.
VI Star Chart shows that PALANTIR TECHNOLOGIES is strong in asset, growth, and weak in profitability, dividend.
PALANTIR TECHNOLOGIES has an intermediate health score of 4/10 with regard to its cashflows and debt, is likely to safely ride out any crisis without the risk of bankruptcy.
PALANTIR TECHNOLOGIES is classified as ‘cheetah’, a type of company that achieved high revenue or earnings growth but is considered less stable due to lower profitability. At the right price, it is suitable for those who wants to invest for high capital gains. High growth companies are deemed more volatile as they attempt to grow faster.
The news caused the stock price to rise by 2.6% the following day. Investors may have been encouraged by Palantir’s recent partnership with the United States Department of Defense. The company will provide its data analytics software to the Department in order to help it track down and defeat terrorist organizations. The partnership is a major win for Palantir and could lead to increased government spending on the company’s products. This could be a major growth driver for the company in the coming years. Despite the “disappointing” results from RBC, investors appear to be bullish on Palantir’s prospects. The stock is up over 2% in early trading.
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