Analyst Reassesses Palantir Stock After Annual Report

Palantir shares experienced a minor decline in early Wednesday trading but remain positive for the month after a Wall Street analyst updated his analysis following the release of the company’s annual report. Palantir (PLTR) has outperformed its peers and market benchmarks this year, with a 65% gain attributed to a robust fourth-quarter earnings report and promising outlook. The company, led by CEO Alex Karp, projects 2025 revenue of approximately $3.75 billion, a 30% increase from 2024, and aims to boost non-government sales beyond $1.8 billion. Palantir’s AI platform, AIP, assists clients in consolidating data into a single model for operational use, while its ontology offering connects real-world entities for commercial clients. The company reported adjusted earnings of nearly $1.16 billion last year, with a 40% profit margin, expecting $1.56 billion in 2025. Jefferies analyst Brent Thill reiterated an underperform rating, noting slowed headcount growth and questioning if the company is adequately investing in AI opportunities. Thill also highlighted stagnant international revenue growth despite a 38% rise in U.S. sales. Positive aspects include reduced customer concentration risk and an increasing customer base, adding 214 new clients in 2024. Palantir shares were down 0.9% in premarket trading. — news from TheStreet

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