Technology
Tuesday, February 6th, 2024 6:28 pm EDT
Key Points
- Palantir’s shares surged by more than 25% following the release of its fourth-quarter earnings, which exceeded analysts’ revenue expectations and showcased strong demand for its artificial intelligence offerings.
- The company reported a 20% increase in revenue to $608.4 million for the quarter, surpassing Wall Street’s anticipated figure. However, its revenue projection for the first quarter fell slightly short of analysts’ expectations, ranging between $612 million and $616 million.
- CEO Alex Karp emphasized the unrelenting demand for large language models in the U.S. and highlighted Palantir’s scaling efforts of its Artificial Intelligence Platform (AIP), having conducted nearly 600 pilots with the technology last year. Analysts at Citi and Jefferies upgraded the stock, attributing the impressive fourth-quarter performance to breakthrough momentum in the company’s commercial unit and accelerated growth in the U.S. commercial sector. Bank of America analysts reiterated a buy rating, foreseeing continued momentum in AI adoption and significant opportunities for Palantir’s software within the U.S. government.
Shares of Palantir surged over 25% following the release of its fourth-quarter earnings, which exceeded analysts’ revenue expectations and demonstrated robust demand for its artificial intelligence (AI) offerings. Palantir, renowned for its defense and intelligence work with the U.S. government, reported a 20% increase in revenue to $608.4 million for the quarter, surpassing the anticipated $602.4 million. Despite slightly lower revenue projections for the first quarter compared to analysts’ estimates, CEO Alex Karp highlighted relentless demand for large language models in the U.S., emphasizing the company’s scaling efforts of its Artificial Intelligence Platform (AIP) and nearly 600 pilots conducted last year. Analysts at Citi upgraded Palantir shares and raised their target price, citing breakthrough momentum in its commercial unit. Similarly, Jefferies analysts upgraded the stock, noting Palantir’s impressive quarter and accelerated growth in the U.S. commercial sector, marking what they deem an inflection point for the company. While concerns persist about Palantir’s valuation, Bank of America analysts reiterated a buy rating, emphasizing the significant impact of AIP on the company’s operations and foreseeing continued momentum in AI adoption, particularly within the U.S. government. They view Palantir’s remarkable growth as indicative of its unique role in facilitating AI-powered data-driven decision-making, underscoring its potential in the evolving technological landscape.
For the full original article on CNBC, please click here: https://www.cnbc.com/2024/02/06/palantir-shares-rocket-25percent-after-revenue-beat-strong-demand-for-ai.html
