Palantir (NYSE:PLTR) reported very strong second-quarter earnings last week, which caused PLTR stock to pop.
The headline numbers were great.
Revenues beat and rose 49% year-over-year. Earnings also beat, paced by EBITDA, which rose 270% year-over-year.
Palantir’s management guided above estimates for the third quarter on revenues. And the company also lifted its full-year free cash flow guide by almost 2X. Not to mention, management also reiterated their target for 30% annual revenue growth into 2025.
Of particular importance is the fact that Palantir’s commercial business scaled nicely this quarter.
Remember, Palantir is a government-first company.
The company designed its data science platform for military and defense use cases. It still absolutely dominates that market.
But Palantir has since repurposed its core platform into one that can be utilized by commercial entities as well.
Bulls have been very excited about this expansion. Bears, on the other hand, have said it won’t work, because they believe the core Palantir platform is too complex and expensive for commercial use.
But so far, the bulls appear to be winning this debate.
In the second quarter, Palantir’s commercial revenues grew 90% year-over-year, while its commercial customer count expanded by 32% since the first quarter. Year-to-date, Palantir’s commercial customer base has grown by 62%. And let’s not forget we’re only halfway through the year.
In other words, Palantir is on track to more than double its commercial customer base this year.
Clearly, Palantir’s commercial product is gaining significant traction. And this continued growth will unlock and entirely new growth vertical for the company. It will also provide ammunition for the stock to take a big leg higher.
The next stop? $30 for PLTR stock.
Yes, PLTR stock is a great investment in an industry ripe for disruption. Which means its stock can go much, much higher over the near- to long-term.
I predict that in the 2020s, you will see a handful of tech startups go from zero to $1 billion valuations in a matter of months.
And that’s why you need to invest in these tech startups today – because if you don’t, you’re going to miss the biggest and fastest economic gold rush in human history.
That’s why I teamed up with Wall Street icon Louis Navellier to host our first-ever 1 to 30 Wealth Summit last week, in which Louis and I discussed these hyperscalable business, why they’re so important, and where we think the best opportunities are…
Of course, we put together a portfolio of hyperscalable stocks to buy. But this isn’t just any portfolio. It’s a portfolio of seven small-cap, hyperscalable stocks that I think have 30X upside potential over the next few years.
Again, you heard that right: seven stocks with 30X or greater upside potential. All in one portfolio.
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On the date of publication, Luke Lango did not have (either directly or indirectly) any positions in the securities mentioned in this article.
