TLDR:
- Palantir stock surged over 45% in November 2024, driven by strong Q3 earnings that beat analyst expectations
- The company reported $0.10 EPS on revenue of $725.5 million, exceeding forecasts of $0.09 EPS on $701.1 million revenue
- Palantir moved its listing from NYSE to NASDAQ on November 26, potentially attracting more tech-focused investors
- BofA analyst raised price target to $75 from $55, citing Palantir’s position in enterprise digitization
- Stock currently trades at 57 times sales, which some analysts warn may indicate overvaluation
The past month has marked a notable period for Palantir Technologies as its stock price climbed more than 45% in November 2024, fueled by several key developments that caught investor attention.
On November 4th, Palantir released its third-quarter earnings report, which exceeded analyst expectations. The company posted adjusted earnings per share of $0.10, surpassing the predicted $0.09, while revenue reached $725.5 million, beating forecasts of $701.1 million.
The earnings announcement triggered an immediate 23% jump in the stock price the following day, as investors responded positively to the company’s performance. This surge reflected growing confidence in Palantir’s ability to expand its market presence.
Palantir’s Artificial Intelligence Platform (AIP) has emerged as a crucial growth driver for the company. The platform has shown strong demand despite what analysts describe as a challenging environment for software sales.
The company maintains a strong relationship with the U.S. government, which continues to be its largest client. Some market observers have linked Palantir’s stock performance to expectations about potential increases in federal spending under certain political scenarios.
In a strategic move, Palantir transferred its stock listing from the New York Stock Exchange to the NASDAQ on November 26th. This decision aligns with the company’s identity as a technology firm, as NASDAQ is traditionally associated with the tech sector.
The exchange move could potentially increase demand from exchange-traded funds (ETFs) that track NASDAQ indices, as these funds may need to adjust their holdings to reflect the change.
Hedge fund interest in Palantir has remained relatively stable, with 43 hedge fund portfolios holding the stock at the end of the third quarter, compared to 44 in the previous quarter.
Bank of America has taken a bullish stance on Palantir’s prospects, with analyst Mariana Perez Mora raising the price target to $75 from $55. The upgrade reflects confidence in Palantir’s position as a leader in enterprise digitization.
The company’s software commands premium pricing, with U.S. commercial clients generating an average annual revenue of $2.23 million per customer based on third-quarter figures.
Revenue growth continued at a pace of 30% year over year in the third quarter, though some analysts note this rate may not fully justify current stock valuations.
The stock currently trades at 57 times sales, a multiple that has sparked debate among market observers about potential overvaluation.
Palantir’s total U.S. commercial client base stood at 321 in the third quarter, generating $179 million in revenue during this period.
The company’s software remains focused on high-value, customized solutions, which limits its potential customer base but maintains premium pricing power.
Recent trading activity shows the stock continuing to attract investor interest, though some analysts caution about the sustainability of current valuation levels.
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