"When the company reported Q2 earnings on Aug. 4, it announced better-than-expected results. Palantir beat on earnings and revenue, with EPS of 16 cents versus 14 cents expected, and revenue of $1 billion versus $940 expected. Revenue rose 48% YoY and crossed the $1 billion mark for the first time. As a result, Bank of America raised its price target to $180 from $150, and Deutsche Bank upgraded the stock to "Hold" from "Sell" with a price target of $160, up from $80."
"In May, the Trump administration rewarded a federal contract worth hundreds of millions to Palantir with the objective of creating a database on every U.S. citizen. On April 21, Investor's Business Daily reported that Palantir won an immigration tracking federal contract from the U.S. Immigration and Customs Enforcement (ICE). The ICE contract, which is said to be worth $30 million, will be used to create an immigration Lifecycle Operating System to be used in deportations."
"Big Data is expected to be big business in the years ahead. According to platform provider Edge Delta, the market for data services is projected to grow from $220.2 billion in 2023 to $401.2 billion by 2028 - an increase of 82.2%. Palantir is a major player in the space. The company was co-founded by entrepreneur and venture capitalist Peter Thiel, who was also the co-founder of PayPal Holdings (NASDAQ:PYPL) and the first outside investor in Facebook."
Palantir shares have surged, gaining 107.25% year-to-date, over 350% in the past year, and about 1,593.86% since its October 2020 IPO. Q2 earnings on Aug. 4 showed EPS of $0.16 versus $0.14 expected and revenue of $1 billion versus $940 million expected, a 48% year-over-year increase and the first time revenue crossed $1 billion. Bank of America raised its price target to $180 and Deutsche Bank upgraded the stock to Hold with a $160 target. Palantir secured a $10 billion U.S. Army contract, a federal contract worth hundreds of millions to build a national citizen database, and a $30 million ICE contract. Data services are projected to grow from $220.2 billion in 2023 to $401.2 billion by 2028.
Read at 24/7 Wall St.
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