This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company’s expected earnings growth rate. The Technology Services was holding an average PEG ratio of 1.42 at yesterday’s closing price. Prior to today’s trading, shares of the company had gained 5.4% over the past month. This has outpaced the Business Services sector’s loss of 4.6% and the S&P 500’s loss of 4.45% in that time. During the first quarter, Palantir generated 54% of its revenue from government clients. Palantir Technologies’ (PLTR -0.75%) stock sank 21% to an all-time low on May 9 after the analytics firm posted its first-quarter earnings report.
According to ETF.com, 113 ETFs held more than 114 million shares of Palantir Technologies as of mid-2023. The Vanguard Mid-Cap Index Fund (VO -1.17%) was the biggest holder, with over 14.5 million shares. However, the fund had only a 0.5% allocation to Palantir, so it might not be the best way for investors to gain passive exposure to the data company. You’ll want to open and fund a brokerage account before buying shares of any company. If you need to open one, here are some of the best-rated brokers and trading platforms. Take your time to research the brokers to find the best one for you.
- In this case, they needed technology that allowed collaboration without sacrificing data security, which led them to build Palantir.
- But over the past three quarters, commercial business has grown significantly faster than government business — which decelerated over the same period.
- Its software collects data from myriad inputs, including internet traffic and cellphone records, and can integrate feeds from almost any source a client has access to.
- Follow Reinhardt Krause on Twitter @reinhardtk_tech for updates on 5G wireless, artificial intelligence, cybersecurity and cloud computing.
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Palantir’s AI-driven growth potential might have you wondering how to invest in its stock. Here’s a step-by-step guide on how to buy stock in the data software company and some factors to consider before adding shares to your portfolio. Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. The Zacks Consensus EPS estimate has moved 4.26% higher within the past month. Palantir Technologies Inc. currently has a Zacks Rank of #3 (Hold). In the second quarter, Palantir expects revenue to grow about 25% year over year to $470 million — which missed the consensus forecast for 29% growth and would mark its slowest growth since its public debut.
Mistake to Avoid as a Beginner in the Stock Market
These results would represent year-over-year changes of +283.33% and +16.25%, respectively. Adjusted gross and operating margins also declined both sequentially and year over year in the first quarter. To find good ideas for stocks trading at attractive valuations, visit TipRanks’ Best Stocks to Buy, a newly launched tool that unites all of TipRanks’ equity insights.
- Palantir’s stock listing comes with unusual rules that give its three founders indefinite control over the company.
- It was the fund’s third-largest holding, making the ETF a potentially attractive alternative option for investors seeking exposure to the data software company and other recently public companies.
- The contract coincides with CEO Alex Karp’s view that there should be collaboration between tech companies and the U.S. government in terms of AI initiatives.
- At a customer conference, Palantir emphasized its go-to-market strategy.
- ChatGPT’s parent company, OpenAI, announced a new version of its flagship program aimed at enterprise businesses.
However, documents obtained by The Intercept[77] show that this is not the case. According to these documents, Palantir’s ICM software is considered ‘mission critical’ to ICE. Palantir Technologies is a public American company that specializes in big data analytics. Headquartered in Denver, Colorado, it was founded by Peter Thiel,[3] Nathan Gettings, how to buy tezos Joe Lonsdale, Stephen Cohen, and Alex Karp in 2003. The company’s name is derived from The Lord of the Rings where the magical palantíri were “seeing-stones,” described as indestructible balls of crystal used for communication and to see events in other parts of the world. It is also worth noting that PLTR currently has a PEG ratio of 1.24.
Valuation
The facts discussed here and much other information on Zacks.com might help determine whether or not it’s worthwhile paying attention to the market buzz about Palantir Technologies Inc. However, its Zacks Rank #3 does suggest that it may perform in line with the broader market in the near term. Palantir Technologies Inc. (PLTR Quick QuotePLTR – Free Report) has recently been on Zacks.com’s list of the most searched stocks. Therefore, you might want to consider some of the key factors that could influence the stock’s performance in the near future. Further, check out IBD Stock Lists and other IBD content to find dozens more of the best stocks to buy or watch. The company name is derived from the palantiri, which are crystal ball-like “seeing stones” from the “Lord of the Rings” book and film series.
This is why empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements. At the center of everything we do is a strong commitment to independent research and sharing its profitable discoveries with investors. This dedication to giving investors a trading advantage led to the creation of our proven Zacks Rank stock-rating system.
Against this delicate political backdrop, Palantir has emphasized that it would not collect or monetize N.H.S. data, but merely provide the software to analyze it. Simultaneously, it has tried to shape the conversation around the role of private companies in health care. The company’s expansion in the N.H.S. has coincided with a crisis at the 75-year-old health service, after years of constrained funding and staffing shortages. The criticism of Palantir is part of a fierce debate in Britain about the role of profit-seeking companies within a taxpayer-funded system, as well as the handling of sensitive patient information. Most Britons oppose further privatization of the health service, polls show.
The company’s name is based on J.R.R. Tolkien’s Lord of the Rings trilogy. The palanteri are indestructible crystal globes used for seeing across great distances. But if PLTR stock jumps to $50 and beyond, then it’s better to put away the elephant gun and wait for a better target. The company may grow into the next IBM, once valued at over $200 billion.
Getting in the Weeds: Service vs. Product
That was on target with analyst expectations, and up from a 1-cent loss a year earlier. But in the nearly two decades since its founding, its offerings have become much wider. Part of the reason for the wild ride might be that it’s really difficult to discern how this technology is applied. Companies forex market cap can use Palantir to detect supply chain issues before they happen, helping them become more efficient in terms of energy and costs. AI-driven software has proven to be an invaluable asset for government and corporate customers and could revolutionize many industries with further developments.
Palantir Technologies Inc. stock rises Thursday, outperforms market
Softer-than-expected guidance for the second quarter also suggests the company’s retention rates will continue declining. Palantir’s mixed numbers rattled investors, and a deeper dive exposes some other pressing problems. Let’s review those issues and see if Palantir’s stock is still worth buying at these depressed levels. For the full year, revenue grew by 47% to $1.1 billion, while average revenue per customer reached $7.9 billion, a 41% year-over-year uptick.
Should I invest?
Aside from artificial intelligence, PLTR stock could get a boost if the company wins a new contract from the United Kingdom’s National Health System. But a bigger contract worth roughly $595 million is now up for grabs. The company is allowing existing shareholders to sell up to one-fifth of their holdings now while hanging onto the rest until the lockup period expires after it reports results for the year ending Dec. 31. Palantir said 475.8 million shares will be available for sale on the first day of trading.
Is Palantir Technologies profitable?
A data warehouse to help companies collect and analyze information. Includes “Monocle,” a graphical data interface, and “AI/Machine Learning,” a statistical package day trading time frames for data scientists. So how can investors value a company that often can’t disclose what it does? Steve Symington has no position in any of the stocks mentioned.