Palantir Rises Premarket Ahead of Q3: Analyst Sees Trillion-Dollar Potential, Hikes Target

• The Alex Karp-led company is expected to report adjusted earnings per share (EPS) and revenue of $0.17 and $1.09 billion, respectively, according to Fiscal.ai.
• Retail trades on Stocktwits are positioned for an all-around beat
• According to Koyfin, the stock trades at a forward 12-month price-earnings (P/E) multiple of 270 times.

Palantir Technologies, Inc. (PLTR) stock rose over 1% in Monday’s early premarket session, ahead of the artificial intelligence (AI)-powered data analytics provider’s third-quarter results, due after the market closes.

The Alex Karp-led company is expected to report adjusted earnings per share (EPS) and revenue of $0.17 and $1.09 billion, respectively, according to Fiscal.ai. This compares to the year-ago numbers of $0.10 and $725.52 million.

Palantir stock has risen 165% year-to-date (YTD) and is the fifth-best performer among S&P 500 companies this year.

Palantir Gets Booster Dose Ahead Of Q3 

A bullish analyst upped the price target for Palantir stock, citing his positive expectations concerning the earnings report. In a note released late Sunday, Wedbush analyst Daniel Ives raised the price target for Palantir stock to $230, implying 14% upside from its Friday close, from his previous target of $200. The analyst reiterated an ‘Outperform’ rating on the stock.

The analyst said Monday’s earnings/guidance will be “another major step in the right direction as Karp & Co. build out this AI juggernaut.” “While investors will continue to fret about valuation,  we believe this will ultimately be a trillion-dollar market cap over the next 2-3 years as Palantir builds out its commercial business into a multi-billion-dollar machine monetizing the use cases in the AI Revolution.”

Wall Street’s consensus revenue is very beatable due to “unprecedented demand” for Palantir’s Artificial Intelligence Platform (AIP), Ives said. “We are hearing from many customers that bootcamps are providing unmatched value and AI insight, leading to very quick sales cycles.”

The analyst also noted that Palantir was gaining further traction across the federal sector.

Not all analysts agree. RBC Capital analysts warned last week that the company’s valuation is unsustainable. According to Koyfin, the stock trades at a forward 12-month price-earnings (P/E) multiple of 270 times.

What Retail Expects From Palantir’s Q3

About seven-tenths of Stocktwits users (16,200) who responded to an ongoing Stocktwits poll were positioned for a quarterly earnings beat from Palantir. The remaining 30% do not see a beat.

Retail traders' sentiment toward the stock remained ‘extremely bullish’ by early Monday, and the message volume on the stream was at ‘high’ levels. 

A Stocktwits user stated that the company will not only beat but also crush earnings, and the stock will soar past $250. They also hoped that management would wait until $300 was reached before announcing a stock split.

Another user said the company will “kill on all measures.”

Palantir’s stock recently received a boost from an Nvidia collaboration, and a Wall Street Journal report stated that the company had taken legal action against some former employees, alleging that they had stolen company secrets.

For updates and corrections, email newsroom[at]stocktwits[dot]com.

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