Recently, it seems one company has been grabbing many headlines, and unlike Intel (INTC), it’s for the right reasons. So why is Palantir (PLTR), a software company engaged in big data analytics, getting so much attention?
If you want to read more extensively about the company, you can read an article by Nikolaos Sismanis, our TipRanks writer, right here.
For now, here are 3 reasons as to why Palantir has been trending recently:
- Impressive Stock Performance: One major aspect of Palantir grabbing the headlines is its stock surge—165% over the past year and 116% year-to-date. This has undoubtedly caught investors’ attention and become a big talking point. This impressive stock surge and the company’s growing capital and margins have propelled PLTR into the S&P 500 as of September 23rd.
- Impressive Second-Quarter Earnings: In the last quarter, Palantir’s revenue was $678 million, a big jump from $533 million in the same quarter in 2023. The firm also surpassed the EPS expectations with 0.09 and continued the upward trend eight quarters ago in 2022. The long-term prospects remain high with contract renewals and the company’s progression toward the commercial sector – more about its agreements in the next point.
- Acknowledgment of its AI and data science: Palantir is all about data analysis and provides a unique AI system that gathers different data sources and turns them into one cohesive information segment. This recognition helped the company earn recent agreements with the U.S. Defense Department and the private sector. One contract is $480M worth with the Department of Defense, and the other is a multi-million-dollar deal with Nebraska Medicine from the private sector to help streamline operations and drive efficiency in patient care. Another contract worth $99.8 million is to implement its Maven Smart System, an AI system designed for battlefield decisions, across the U.S. military.
Conclusion
Palantir seems to be experiencing a watershed moment that could turn it into one of the biggest companies in the AI data industry. PLTR stock has seen a big jump in the past year, and so have the company’s revenues. The company just signed new contracts with the U.S. Department of Defense and Nebraska Medicine in the private sector, so the near-term and long-term prospects look like a sure thing. That is why Palantir is making so many headlines, along with this one.
