Why Palantir Technologies Stock Skyrocketed (Again) Today

Palantir Technologies (NASDAQ: PLTR) banal charged sharply higher Friday, climbing arsenic overmuch arsenic 9.9%. As of 1:10 p.m. ET, the banal was inactive up 9.4%.

The catalyst that sent the data-mining and artificial quality (AI) specializer higher was evolving capitalist sentiment toward bundle stocks.

Missed Nvidia successful 2009? This Rare Signal Is Flashing Again. In 2009, a "Double Down" awesome flashed for a little-known chipmaker called Nvidia. For the archetypal clip successful years, that aforesaid "Total Conviction" awesome is flashing for a institution 1/100th the size of Nvidia. Continue »

Is the fashionable communicative wrong?

Over the past twelvemonth oregon so, investors person go acrophobic that advances successful AI would yet decimate the bundle business, sending galore software-as-a-service (SaaS) stocks plunging. Even Palantir, which offers AI solutions that integrate straight with lawsuit data, wasn't immune.

In fact, the banal was deed with a treble whammy, arsenic investors weighed concerns astir a slowdown successful AI spending against the imaginable for AI to automate tasks antecedently performed by endeavor software.

However, Palantir reported second-quarter results connected Tuesday that seemed to antagonistic those fears, sending the banal soaring much than 27% successful a azygous day. Revenue of $1.94 cardinal roseate 93% year-over-year, the company's highest ever twelvemonth implicit twelvemonth maturation rate, driving adjusted net per stock (EPS) up 156% to $0.41.

The banal got different boost contiguous arsenic respective endeavor bundle companies reported better-than-expected results. For example, Twilio, which helps enterprises integrate video, voice, and substance into their apps, saw its banal surge arsenic overmuch arsenic 31% contiguous (as of this writing) aft reporting grounds profits and currency flow. This helped person investors that AI apt won't devour all software, astatine slightest not anytime soon.

Palantir's robust results person helped quell capitalist fears concerning its valuation, but the banal is inactive pricey. However, astatine 74 times adjacent year's expected earnings, Palantir's triple-digit nett maturation helps warrant its lofty premium.

Should you bargain banal successful Palantir Technologies close now?

Before you bargain banal successful Palantir Technologies, see this:

The Motley Fool Stock Advisor expert squad conscionable identified what they judge are the 10 champion stocks for investors to bargain now… and Palantir Technologies wasn't 1 of them. The 10 stocks that made the chopped could nutrient monster returns successful the coming years.

Consider erstwhile Netflix made this database connected December 17, 2004... if you invested $1,000 astatine the clip of our recommendation, you'd person $397,405!* Or erstwhile Nvidia made this database connected April 15, 2005... if you invested $1,000 astatine the clip of our recommendation, you'd person $1,344,091!*