Palantir stock price spiked in the pre-market session on Tuesday, going up by 16.9 percent at the time of writing to trade at $48.61. The software-as-a-service (SaaS) company has triggered excitement in the market after its third quarter earnings far-exceeded analysts’ forecasts.
The company reported revenues of $726 million, up from $558 million from the corresponding quarter last year. Furthermore, it exceeded its own revenue guidance for the quarter, which forecast the figure at between $697 million to $701 million. The company reported EPS of $0.10, up from $0.07 the previous quarter and exceeding median forecast figure of $0.09.
The upbeat earnings were primarily driven by a 40 percent growth in revenue from government contracts, which constituted 44 percent of the income. The company is at the helm of Artificial Intelligence Platform (AIP), which is projected to experience a steady rise in demand as government agencies and commercial customers angle to stay competitive.
Palantir (NYSE: PLTR) reported an impressive gross profit margin of 81.3 percent, which underlines its strong bottom line. Also, the company adjusted its guidance for 2024 by 8 percent from $2.805 billion to $2.809 billion. CEO Alex Karp gave an upbeat outlook for the future, describing the demand for its AI services as “unrelenting”.
Palantir stock price will likely head upward if the momentum keeps it above the 49.0 pivot point. The first resistance is likely to come at 50.73, but a stronger momentum could break above that level to test 51.75.
On the downside, a break below 49.70 will favour the sellers to take control. With that, the price could find the first support at 49.00. However, if the downward momentum strengthens, the price could break below the first support. That would invalidate the upside narrative, and the resulting momentum could see the price go lower to test the second support at 48.27.
This post was last modified on %s = human-readable time difference 15:28