AI giant, Palantir Technologies Inc. (NASDAQ:PLTR), is drawing loud praise from Wall Street analysts following the company’s robust second-quarter performance, as it surged past consensus estimates.
Check out the current price of PLTR stock here.
What Happened: On Monday, senior analyst Dan Ives, who refers to the company as the “Messi of AI,” joined Yahoo Finance’s Market Domination Overtime to share his reactions and discuss its second-quarter performance.
According to Ives, this was “a blowout across the board,” as he praised CEO Alex Karp’s leadership as a “Hall of Fame performance.” Speaking on valuation concerns, Ives says that, in his view, the company will reach a “trillion dollar market cap” over the next two to three years.
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The host of CNBC’s Mad Money, Jim Cramer, doubled down on his bullish outlook on the stock, following its results. “Palantir, when it was $50, I said it would go to $100, when it was at $100, I said it would go to $150,” and now Cramer says the “next stop is $200,” which is a 24.48% upside from current levels.
Cramer also highlighted a term used during Palantir’s earnings call, “Doomerism,” referring to the negativity surrounding AI and the company itself, likely promoted by short-sellers.
Meanwhile, Neil Sethi, the managing partner at fund manager, Sethi Associates, lauds the company’s outperformance in the face of “sky-high expectations.”
He notes that “sales jumped 68% to $733 million,” and the company “raised its revenue outlook for the full year to $4.14 billion to $4.15 billion, exceeding analysts' prior expectation of $3.91 billion,” as it cites the “astonishing impact” of artificial intelligence on its business.
Why It Matters: Palantir released its second-quarter earnings on Monday, reporting revenue of $1.004 billion, up 48% year-over-year, and beating analyst estimates of $939.71 million. It posted a profit of $0.16 per share, which was again ahead of consensus estimates at $0.14 per share.
Riding the AI momentum, the company raised its guidance for the full year to $4.15 billion, up from its prior guidance of $3.90 billion, which was in line with consensus estimates.
Price Action: Palantir shares were up 4.14% on Monday, trading at $160.66, and are up another 4.57% after hours, following its earnings announcement after markets closed.
According to Benzinga’s Edge Stock Rankings, Palantir shares score high on Momentum and Growth, with a favorable price trend in the short, medium and long term. Click here for deeper insights into the stock, its peers and competitors. .
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