Palantir (NYSE:PLTR) is among the top tech names investors continue to focus on as an artificial intelligence (AI) beneficiary. This view has led PLTR stock to outperform most stocks in the market this year, with the big data and AI stock surging 45% higher on a year-to-date basis.
That said, PLTR stock is currently down a bit more than 3.5% in early afternoon trading, ahead of pivotal upcoming quarterly earnings, expected to be released after the bell today.
In Palantir’s latest quarter, a revenue beat (growth of 20.8% year-over-year) and another positive quarter of earnings propelled the stock higher. But with the bar raised even higher this quarter, concerns do appear to be mounting that Palantir may have trouble pole-vaulting over this higher metric.
Let’s dive into what investors will be watching, and where Palantir could be headed following this key earnings report.
PLTR Stock Down Ahead of Earnings
- Investors will be watching how year-over-year revenue growth materializes this quarter. Consensus estimates call for a 22.3% growth rate on Palantir’s top line, driven by robust commercial customer growth.
- On the bottom line, analysts expect earnings to be 8 cents per share. This 32 cent per share annualized run rate would have the stock valued at roughly 75 times trailing earnings.
- Earnings estimates have stayed relatively stable in recent weeks, as many experts believe Palantir’s growth trajectory should remain roughly intact.
- Accordingly, any large deviation (to the upside or downside) from analyst estimates could lead to a big move in PLTR stock.
- Generally speaking, Palantir has been an outperformer in hitting its earnings and revenue targets, only missing one quarter over the past two years, so the odds are in favor of the bulls after today’s drop.
On the date of publication, Chris MacDonald did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
On the date of publication, the responsible editor did not have (either directly or indirectly) any positions in the securities mentioned in this article.
