Palantir (PLTR) just reported robust Q3 earnings with high sales growth, indicating that demand for its AI software platform is strong. Known as a data analytics company, Palantir has emerged as a clear winner of the AI boom, expanding into other areas of the tech sector enjoying substantial growth. Share prices have risen more than 100% over the past year. Now, it has raised its annual revenue forecast, which will likely boost investor confidence in its growth prospects.
What’s Going On with Palantir Stock?
Despite yesterday’s earnings report, Palantir stock is down 1% today. This is likely due to negative market momentum, and trading will probably stabilize quickly. PLTR stock jumped 17% in pre-market trading today, which shows that the market is reacting well to its guidance raise. Share prices have more than doubled over the past three months. Now, Palantir is even better positioned to keep growing.
Palantir’s 30% year-over-year sales growth is highly encouraging, with its $726 million revenue beating Wall Street estimates of $705.11 million. This shows that demand for the company’s AI software is robust and likely to continue growing. As Reuters reports, it is “used to test, debug code and evaluate AI-related scenarios, as well as its government-oriented services that include software to visualize army positions.”
This puts Palantir in an excellent position to continue riding the AI boom to new heights in 2025. Its platform has implications for both private and public sector clients, and the global AI market is expected to expand at a CAGR of 19.1% between 2024 and 2034. That shows ample opportunity for growth at a time when demand for Palantir’s AI software is already rising.
Is Palantir Stock a Strong Buy Right Now?
Wall Street isn’t bullish on Palantir, even after the strong Q3 earnings report. Analysts have a Hold consensus rating on PLTR stock based on four Buys, seven Holds, and five Sells assigned in the past three months, as indicated by the graphic below. Despite a 123% rally in its share price over the past year, the average PLTR price target of $29 per share implies 30% downside potential.
Despite maintaining fairly bearish outlooks, multiple analysts have increased their price targets on Palantir today. Michael Latimore of Northland Securities raised his from $35 to $38 while maintaining a Hold rating. And while Brad Zelnick of Deutsche Bank (DB) kept his Sell rating on PLTR stock, he increased his price target from $20 to $26.
