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Palantir Soars on Upbeat Earnings & Outlook: ETFs to Benefit

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Palantir Technologies (PLTR - Free Report) , the data analytics firm known for its work with government agencies, has seen a 20% stock jump on Nov 2, 2023 (at 2.8 times higher volume) following an impressive third-quarter earnings report. Outperforming expectations set by Zacks Consensus Estimate, the company reported adjusted earnings of 7 cents per share, a cent higher than the 6 cents anticipated.

Revenue Growth and Profitability

The third quarter showed not just a beat on earnings but also on revenue, with Palantir pulling in $558 million against the $554.6 million forecast by Zacks Consensus Estimate. This marks a 17% increase in revenue from the previous year's figure of $478 million. Notably, this quarter was also the fourth consecutive quarter of profitability for the company, with net income reported at $72 million, or 3 cents per share— a stark turnaround from the net loss of $123.9 million seen in the same quarter last year.

S&P 500 Eligibility and CEO’s Remarks

The consistent profitability may pave the way for Palantir's inclusion in the S&P 500 index. Alex Karp, the co-founder and CEO, made headlines recently, reaffirming the company’s commitment to Western allies during a U.S. Senate bipartisan AI Insight Forum. “We’ve never supplied our products to enemies. We proudly support the U.S. government. I am proud that we are supporting Israel in every way we can,” Karp stated, as quoted on CNBC.


Looking ahead, Palantir expects to see continued growth, forecasting fourth-quarter revenue to be between $599 million and $603 million. This optimistic outlook extends to their full-year revenue guidance, which has been raised to between $2.216 billion and $2.22 billion, up from a previously projected $2.212 billion.

Commercial Sector Expansion

Palantir’s successes aren't limited to its government work. The company reported a 33% growth in U.S. commercial revenue and a notable 37% increase in its U.S. commercial customer base—expanding from 132 to 181 customers over the year. This diversified growth underscores Palantir's expanding footprint in the commercial sector, which complements its established presence in the defense and intelligence realm.

ETFs to Benefit

Palantir's latest earnings report paints a picture of a company that is not only turning profits consistently but is also expanding its commercial reach, both in terms of revenue and customer base. While investors can play the stock, PLTR-heavy ETFs are also intriguing bets. Below we highlight a few of them:

Renaissance IPO ETF (IPO - Free Report) – PLTR Weight 7.99%

The underlying Renaissance IPO Index is a portfolio of newly U.S.-listed initial public offerings of companies whose unseasoned equities are under-represented in core U.S. equity indices. IPOs that meet liquidity & operational screens are included in the Index at the end of the fifth day of trading, or upon quarterly reviews, weighted by tradable float, capped at 10% & removed after two years. The fund charges 60 bps in fees.

Global X Defense Tech ETF (SHLD - Free Report) – PLTR Weight 5.52%

The Global X Defense Tech Index seeks to provide exposure to defense technology companies that are positioned to benefit from technology, services, systems and hardware that cater to the defense and military sector. The fund charges 50 bps in fees.

ProShares Big Data Refiners ETF (DAT - Free Report) – PLTR Weight 4.97%

The underlying FactSet Big Data Refiners Index tracks the performance of companies that provide analytics, software, hardware and other computing infrastructure for managing and extracting information from large structured and unstructured datasets. The fund charges 58 bps in fees.

SoFi Social 50 ETF (SFYF - Free Report) – PLTR Weight 4.14%

The underlying SoFi Social 50 Index tracks the performance of a portfolio of the 50 most widely held U.S. listed equity securities in self-directed brokerage accounts. The fund charges 29 bps in fees.

(Disclaimer: This article has been written with the assistance of Generative AI. However, the author has reviewed, revised, supplemented, and rewritten parts of this content to ensure its originality and the precision of the incorporated information.)

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