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Palantir Technologies Earnings Review: Buy the Dip?
Palantir Technologies ((PLTR - Free Report) ) reported strong quarterly results Monday after the close, beating expectations on both the top and bottom line. The company posted adjusted earnings of $0.21 per share, above the $0.17 consensus, on revenue of $1.18 billion, also topping estimates of $1.09 billion. Despite the beat, shares are pulling back as investors weigh valuation concerns after the stock has gained more than 150% year-to-date.
Total revenue surged 63% year-over-year, rising from $725.5 million to $1.18 billion and marking the second consecutive quarter above $1 billion. Net income more than tripled to $475.6 million, or $0.18 per share, compared with $143.5 million, or $0.06 per share, a year earlier, demonstrating accelerating profitability.
It was an exceedingly good report, though valuation remains a key concern, with the stock trading at over 100x sales and roughly 400x earnings, levels that far exceed other AI leaders such as Nvidia ((NVDA - Free Report) ) and Vertiv ((VRT - Free Report) ). Nvidia and Vertiv are both trading at 46x forward earnings currently, an elevated, but reasonable level compared to Palantir.
That said, for momentum-oriented investors, the current pullback could present a tactical buying opportunity. This technical setup suggests a potential entry point for those looking to position ahead of the potential next leg higher.
Image Source: Zacks Investment Research
Palantir Technologies Stock Pulls Back
In the chart below, Palantir recently broke out from a multi-month bull flag, confirming a strong uptrend with solid follow through. However, following Monday’s earnings release, the stock has pulled back roughly 7%, retracing to test its former breakout level.
Importantly, buyers have stepped in around this prior resistance zone, which is now acting as support. In technical terms, pullbacks to breakout levels often present favorable entry points, offering both an attractive setup and a well-defined area to manage risk.
For investors looking to initiate or add to a position in PLTR, these levels could represent a tactical buying opportunity. Traders can use the $185 support zone as a risk marker. A decisive break below that level could signal further downside, while holding above it may confirm the continuation of the stock’s bullish trend.
Image Source: TradingView
Should Investors Buy Shares in PLTR?
Palantir has been one of the market’s best-performing, and most controversial stocks of the past few years. Throughout its rally, critics have pointed to the company’s exceptionally high valuation, yet the stock has continued to climb, defying traditional metrics. Clearly, the market believes Palantir is doing something unique to justify its premium multiple, even if at some point, valuation will inevitably matter.
That said, in powerful bull markets like the current one, momentum can persist far longer than skeptics expect. For active traders, the current pullback may offer an appealing entry point within a larger uptrend, especially as the company continues to execute operationally and delivers accelerating profitability.
For more valuation-sensitive investors, alternatives such as Vertiv and Nvidia among others, offer exposure to the AI theme at more moderate multiples. But for those comfortable with momentum and volatility, Palantir remains one of the market’s most compelling high-beta plays in the AI ecosystem.
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Image: Bigstock
Palantir Technologies Earnings Review: Buy the Dip?
Palantir Technologies ((PLTR - Free Report) ) reported strong quarterly results Monday after the close, beating expectations on both the top and bottom line. The company posted adjusted earnings of $0.21 per share, above the $0.17 consensus, on revenue of $1.18 billion, also topping estimates of $1.09 billion. Despite the beat, shares are pulling back as investors weigh valuation concerns after the stock has gained more than 150% year-to-date.
Total revenue surged 63% year-over-year, rising from $725.5 million to $1.18 billion and marking the second consecutive quarter above $1 billion. Net income more than tripled to $475.6 million, or $0.18 per share, compared with $143.5 million, or $0.06 per share, a year earlier, demonstrating accelerating profitability.
It was an exceedingly good report, though valuation remains a key concern, with the stock trading at over 100x sales and roughly 400x earnings, levels that far exceed other AI leaders such as Nvidia ((NVDA - Free Report) ) and Vertiv ((VRT - Free Report) ). Nvidia and Vertiv are both trading at 46x forward earnings currently, an elevated, but reasonable level compared to Palantir.
That said, for momentum-oriented investors, the current pullback could present a tactical buying opportunity. This technical setup suggests a potential entry point for those looking to position ahead of the potential next leg higher.
Image Source: Zacks Investment Research
Palantir Technologies Stock Pulls Back
In the chart below, Palantir recently broke out from a multi-month bull flag, confirming a strong uptrend with solid follow through. However, following Monday’s earnings release, the stock has pulled back roughly 7%, retracing to test its former breakout level.
Importantly, buyers have stepped in around this prior resistance zone, which is now acting as support. In technical terms, pullbacks to breakout levels often present favorable entry points, offering both an attractive setup and a well-defined area to manage risk.
For investors looking to initiate or add to a position in PLTR, these levels could represent a tactical buying opportunity. Traders can use the $185 support zone as a risk marker. A decisive break below that level could signal further downside, while holding above it may confirm the continuation of the stock’s bullish trend.
Image Source: TradingView
Should Investors Buy Shares in PLTR?
Palantir has been one of the market’s best-performing, and most controversial stocks of the past few years. Throughout its rally, critics have pointed to the company’s exceptionally high valuation, yet the stock has continued to climb, defying traditional metrics. Clearly, the market believes Palantir is doing something unique to justify its premium multiple, even if at some point, valuation will inevitably matter.
That said, in powerful bull markets like the current one, momentum can persist far longer than skeptics expect. For active traders, the current pullback may offer an appealing entry point within a larger uptrend, especially as the company continues to execute operationally and delivers accelerating profitability.
For more valuation-sensitive investors, alternatives such as Vertiv and Nvidia among others, offer exposure to the AI theme at more moderate multiples. But for those comfortable with momentum and volatility, Palantir remains one of the market’s most compelling high-beta plays in the AI ecosystem.