Palantir stock has struggled for months, but the company may have just given investors some hope again.
Shares of Palantir surged 29.45% on Aug. 4, the trading day after Palantir reported second-quarter results that topped Wall Street’s expectations
The company posted adjusted earnings of 41 cents a share, ahead of analysts’ estimates of 35 cents. Revenue jumped 93% year over year to $1.94 billion, beating expectations of $1.80 billion. “Forget consensus,” Palantir’s CEO Alex Karp said in a CNBC interview. “To my knowledge, no businesses at our scale has even grown half this much.” Karp has long been confident about Palantir’s growth, but investors haven’t always shared his optimism. Even after the recent 29% rally, the stock is still down 8.49% year-to-date, while the S&P 500 has rallied 13%.
Why Palantir is different from other software companies One major concern for Palantir stock has been that enthusiasm for software companies could fade as AI threatens their growth and profitability. Palantir’s latest results suggest that it hasn’t happened yet. Revenue from Palantir’s U.S. government business rose 90% from a year ago to $809 million.