Palantir Technologies Inc (PLTR)

Palatir Technologies Inc (PLTR) stock dropped by 15.11%. The catalyst for this sharp drop was the company's quarterly report.

• The Quarterly Report Isn't Good Enough: In the first quarter, Palantir reported a revenue increase of 21% year over year, reaching $634 million, with U.S. commercial revenue particularly strong at $150 million, marking a 40% jump. This quarter marked the company's sixth consecutive quarter of profits under generally accepted accounting principles (GAAP), with adjusted earnings per share (EPS) climbing by 60% to $0.08. These results surpassed analysts' consensus estimates of $615 million in revenue and $0.08 in EPS.
• Disappointing guidance: Despite the impressive performance, some investors were disappointed by Palantir's conservative guidance for the full year. The company expects revenue to range from $2.677 to $2.689 billion, slightly below analysts' consensus of $2.71 billion. However, Palantir raised its forecast for U.S. commercial revenue to at least $661 million, indicating a growth rate of 45%.

Palantir (PLTR) stock fell by 6.12% after the software company witnessed its first Wall Street downgrade in more than a month. Analysts at Monness, Crespi, and Hardt downgraded Palantir stock from Neutral to Sell, citing an "egregiously rich valuation" following the company's AI-driven nearly 200% rally over the past year. The brokerage firm issued a 12-month target price of $20 for PLTR, which is over 18% lower than the stock's last closing price. This implies a downside risk of almost 20%.

• Reasons for Downgrade: Analysts noted challenges including inconsistent government contract revenues, uneven execution, and high valuation, all while expressing caution about the economic downturn. Despite its premium valuation compared to top competitors, Palantir's expected revenue growth for 2024 is lower than its peers. Analysts believe it will take years for Palantir to grow into its current valuation.
• Palantir's Recent Performance and Outlook: Since launching its Artificial Intelligence Platform (AIP) in the first half of 2023, Palantir has seen its stock surge 167% in 2023 and an additional 43% this year, outperforming the wider market. Wedbush analysts, however, remain optimistic, upping their 12-month price objective on PLTR from $30 to $35, implying more than 40% upside from the latest closing price. They expect Palantir to garner a meaningful share of the $1 trillion AI Global TAM as enterprises and governments implement platforms for automating complex workflows.
• Analyst Recommendations and Average Price Target: Despite Wedbush's bullish outlook, the average price target on the stock from the past 12 months is $19.29, suggesting over 21% downside from current levels. It's important to note that Wedbush is among the most optimistic brokerage firms regarding PLTR.

Shares of Palantir Technologies Inc (PLTR) dropped by 6.39% from $18.30 to $17.13 in the trading on Wednesday, December 6, 2023. The reason why PLTR is down today is due to several factors affecting investor sentiment:

• Continued Losses: Palantir had been facing a series of consecutive losses over the past few trading days. Prior to the 6.39% drop, the stock had already declined by 9.2% on Monday and an additional 0.5% on Tuesday, contributing to negative sentiment among investors.
• Data Ownership Concerns: An analyst report raised concerns about data ownership issues with customers, specifically highlighting concerns from the U.S. Army. The report suggested that these concerns could limit the potential gains from future contracts. Notably, Palantir has a significant four-year, $458 million contract with the Army Data Platform that is set to conclude in the coming weeks.
• Impact on PLTR: The combination of consecutive losses and concerns regarding data ownership and future contracts with key customers, such as the U.S. Army, negatively impacted Palantir's stock price. Investors may have become cautious about the company's growth prospects and its ability to secure lucrative contracts in the future.

Shares of Palantir Technologies Inc (PLTR) dropped by 9.23% from $20.27 to $18.40 in the trading on Monday, December 04, 2023. The reason why PLTR is down today is due to concerns regarding the renewal of a critical Army contract.

• Analyst's Contract Renewal Worries: William Blair analyst Louie DiPalma, with an underperform rating on PLTR, raised doubts about the future of a $458 million Army contract set to expire. DiPalma's analysis suggests a probable significant reduction in the renewal contract value, potentially down to $116 million over two years, involving other vendors.
• Data Ownership Dispute: DiPalma also pointed out potential issues related to data ownership, as Palantir intends to use customer data for AI model training, which could lead to disagreements during contract renewal negotiations.

Shares of Palantir Technologies Inc (PLTR) dropped by 7.22% from $21.34 to $19.80 in the trading on Tuesday, November 21. The reason why PLTR is down today is due to news that Palantir and its partners secured a contract from England's National Health Service (NHS) worth up to £330 million ($414 million) for a seven-year project aimed at simplifying communication across NHS systems. However, concerns arose among investors as the contract's value appeared to be lower than expected, and more partners were involved than previously thought, potentially reducing Palantir's share. Despite the NHS website previously indicating a total contract value of £480 million over seven years, the official press release cited an investment of only £330 million, though analysts suggested that options could still reach the £480 million figure. These concerns likely contributed to the stock's decline.

Palantir, the big data company renowned for its numerous government contracts, experienced a 5% dip in share value following the announcement of its expanded partnership with Microsoft into the public sector. This move is aimed at providing US government clients and industry associates with enterprise-grade capabilities offered by Palantir and Microsoft.

https://www.benzinga.com/news/23/04/31676496/whats-going-on-with-palantir-technologies-stock-today