Maybe you’ve heard warnings about Palantir Technologies (NYSE:PLTR) in the lead-up to the company’s quarterly financials. An AI “overhype warning” and concerns about a “slowdown” in businesses” sounds dire. There’s even been a PLTR stock forecast suggesting that it could fall 20%. Level-headed investors need not worry about PLTR’s performance.
Meanwhile, Palantir Technologies CEO Alex Karp made a scary declaration, saying, “It certainly feels like we’re in a world of increasing chaos and danger.” That’s alarming, no doubt, but is it a reason to panic-sell Palantir stock? Not at all, and after delving into the data, we’re assigning the stock a confident “B” grade.
PLTR Stock Jumps on Strong Quarterly Data
As it turned out, Palantir stock didn’t crater 20% after the company released its fourth-quarter fiscal 2023 results. Instead, the stock jumped 16% in after-hours trading. Then, it was up 25% midday the following day.
This isn’t to suggest that the market is always “right.” In this instance, however, it’s evident that the market recognizes Palantir Technologies’ strong results amid “increasing chaos and danger.”
That sense of danger may be what caused Palantir Technologies’s Q3 FY2024 U.S. commercial customer count grow 55% year over year (YOY). Probably, it also helped the cybersecurity-services provider to increase its Commercial revenue by 32% YOY.
And by the way, it’s not as if Palantir’s public-sector revenue is wilting, either. In fact, Palantir Technologies’ Government revenue grew 11% YOY. Numbers like that should send the perma-bears into hiding for a little while.
Harsh Words From Palantir Technologies’ CEO
We always strive to be decorous, but Karp evidently isn’t bound by the rules of discretion. Not long ago, the Palantir Technologies chief executive bluntly said about the company’s skeptics, “Because if I’m right, their businesses and investments are all going to fail.”
We’re not quite prepared to agree with this declaration. However, Karp’s confidence isn’t just braggadocio, as it’s backed up by the aforementioned data point. Perhaps this also supports Karp’s contention that Palantir Technologies’ quarterly commercial business was “bombastic, baller, incomprehensibly good.”
Karp is certainly a “character,” as some people like to say. Maybe he should choose to temper his enthusiasm slightly, since Palantir’s Q3 FY2024 Government revenue of $324 million fell short of Wall Street’s call for $333 million. Thus, Palantir Technologies’ quarterly wasn’t entirely perfect, though it certainly was quite good.
PLTR Stock Forecast: Don’t Be a Stubborn Bear
Cybersecurity threats are a major problem in society. However, Palantir Technologies is showing that it can thrive when these threats pose “increasing chaos and danger.”
In the final analysis, being a skeptic of Palantir Technologies probably won’t benefit investors in the long run. Our PLTR stock forecast determines that higher share prices are likely in the coming quarters, and the stock earns a “B” grade from us.
On the date of publication, Louis Navellier had a long position in PLTR. Louis Navellier did not have (either directly or indirectly) any other positions in the securities mentioned in this article.
The InvestorPlace Research Staff member primarily responsible for this article did not hold (either directly or indirectly) any positions in the securities mentioned in this article.
