Vive la revolution!
These have been the phrases that drove the French Revolution again within the 18th Century and the phrase helps gas the age of synthetic intelligence within the twenty first Century.
The phrase “revolution” cropped up not less than 13 instances throughout Palantir’s (PLTR) fourth-quarter earnings name with analysts on Feb. 4, as the large knowledge analytics software program firm beat Wall Road’s fourth-quarter earnings and income estimates.
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“Welcome to our Palantir revolution, in any other case often called our earnings name,” CEO and co-founder Alex Karp mentioned.
The Denver, Colo.-based firm makes use of its synthetic intelligence platform, AIP, to assist purchasers pull collectively disparate collections of information right into a single mannequin that they’ll use of their day-to-day enterprise.
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“You realize, the a part of the rationale we have performed so properly is the specialists look to the previous as a sign of the longer term once we’re trying to the longer term as a sign of the current,” Karp mentioned. “And it is very, very exhausting to determine what is going on to occur.”
Palantir additionally advantages from its ontology providing, a framework that helps characterize and join real-world entities, knowledge, and processes for its business purchasers.
Palantir CEO: we’re making America extra deadly
A serious portion of the corporate’s income comes from authorities contracts, significantly inside the U.S. Division of Protection. Karp has been very outspoken about his firm’s position on the battlefield.
“We consider we’re making America extra deadly, making our adversaries more and more afraid of performing towards the pursuits of America and particularly People,” he mentioned. “And we’re pleased with our ethical stance, and we’re very lengthy on the U.S. and what’s occurring and what is going to occur sooner or later.”
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Palantir earned 14 cents per share, up from 8 cents a 12 months in the past, and beating Wall Road’s name for 11 cents. Income totaled $828 million, up 36% from a 12 months in the past, beating the consensus estimate of $776 million in gross sales.
The corporate additionally provided better-than-expected steering, forecasting income to vary between $858 million and $862 million, forward of estimates of $799 million. Palantir forecast gross sales of $3.74 billion to $3.76 billion for the complete 12 months, forward of the $3.52 billion common estimate.
“We’re on the method starting of a revolution,” Karp mentioned. “And we plan to be a cornerstone, if not the cornerstone firm, in driving this revolution within the U.S.”
Palantir’s inventory is up practically 500% from a 12 months in the past.
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Analysts at Financial institution of America Securities have been feeling the spirit as they boosted their value goal on Palantir shares to $125 from $90 whereas reiterating their purchase score.
“Vive la revolution – that is no one-time occasion,” the agency mentioned in a analysis word. “Palantir leap-frogged over full 12 months 2024 expectations and the message was clear – 2024 was solely a gown rehearsal. The corporate sees the world ripe for an AI and expertise revolution. “
“We see PLTR enabling and main this revolution in each Industrial and Protection markets,” BofA added.
With the AI market changing into extra crowded with extra commoditized options, the agency mentioned that it believes Palantir’s worth proposition is barely changing into extra pronounced.
“PLTR’s concentrate on operationalizing knowledge, establishing high-fidelity digital enterprise-twins, and accelerating decision-making is a profitable method,” BofA mentioned. “We count on additional market-value being awarded to the AI value-adders vs. commodity distributors and stand firmly that PLTR will stay a value-adder.”
Citi raised the agency’s value goal on Palantir to $110 from $42 and saved a impartial score on the shares.
Veteran analyst: Palantir best name of my profession
The corporate posted “one other spectacular all-around beat,” with most key efficiency indicators reaccelerating, pushed by power within the U.S. regardless of robust compares, the agency mentioned.
Citi mentioned Palantir’s bookings metrics improved considerably, with U.S.-commercial notching triple-digit progress.
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Nonetheless, the agency retained the impartial score on the inventory, noting there was doubtless some non-repeatable finances flush in This autumn and now hitting softer Q1 seasonality.
Stephen “Sarge” Guilfoyle could not include his pleasure over Palantir’s outcomes, telling readers in his TheStreet Professional column that he “began screaming like a college child.”
“Very un-military like,” the veteran analyst. “My spouse bumped into my workplace. She thought perhaps I had a coronary heart assault. I do not assume she hoped I had a coronary heart assault.”
Guilfoyle, who began his profession on the ground of the New York Inventory Alternate within the Nineteen Eighties, mentioned he was listening to the Fly Solid audio service and, upon listening to the commentator point out Palantir Applied sciences, “the remaining was the stuff of gummy bears and sweet canes.”
“Simply superior,” mentioned Guilfoyle, reminding readers of his lengthy historical past of proudly owning Palantir shares. “For the brand new children, this inventory has been each the best name and greatest funding of my many-decades profession.”
Heading into 2024, Guilfoyle picked Palantir as his high inventory for the 12 months. Final month, he picked Palantir once more as his favourite inventory for 2025.
And now, following earnings, he is boosted his value goal on Palantir’s inventory to $133 from $90. Guilfoyle is not holding again his emotions about Karp.
“You all know I feel (he) is a once-in-a-very-blue-moon chief government who combines the correct mix of genius, depth, focus and perhaps even slightly eccentricity,” he mentioned. “An ideal ingredient when it really works and proper now, it is working.”
Palantir isn’t just a progress inventory, Guilfoyle mentioned, it is one of many few “progress” shares in late 2024 and early 2025 that’s really experiencing an acceleration within the agency’s price of gross sales progress.
“Money flows are usually not simply constructive however rising.” he mentioned. “The stability sheet is simply past merely being fortress-like. Oh, and the enterprise remains to be attracting each new prospects and elevated enterprise with previous prospects.”
“All whereas serving the protection and intelligence wants of america with a highly-tuned focus,” Sarge added.
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