Palantir’s stock skyrocketed by nearly 30% on Tuesday after reporting “otherworldly” revenue growth through its latest quarter, reversing course for the enterprise software firm, whose shares have plunged so far this year amid broader concerns about the AI market.
Key Facts
Shares of Palantir surged 29.8% as of Tuesday afternoon, pacing the stock’s largest single-day gain since Feb. 6, 2024 (up 30.8%).
Palantir on Monday reported quarterly revenue of $1.9 billion and earnings per share of $0.41, far surpassing estimates of $1.8 billion and $0.34, respectively, according to FactSet.
A 93% year-over-year boost in overall revenue was largely driven by a 149% surge in commercial revenue to $764 million, while government revenue jumped 90% to $809 million.
Palantir CEO Alex Karp, in a statement, referred to his firm’s latest quarter as “otherworldly,” citing the revenue figures, noting, “The sovereign AI revolution makes us very optimistic about the future”
Palantir’s results “further weaken the bear case around rising AI competition,” analysts from Citi wrote in a note Tuesday, adding demand for data privacy among AI firms sets Palantir apart from its competitors.
Forbes Valuation
Karp’s net worth rose $3.1 billion to $15.3 billion amid Palantir’s stock growth on Tuesday, moving him up 67 spots in Forbes’ billionaire ranks to place him as the 199th-richest person in the world, according to Forbes’ estimates. He co-founded Palantir with billionaire Facebook investor
($29.8 billion) and Peter Thiel($5.4 billion), and the company relied on an unusual direct listing process when it went public on the New York Stock Exchange in 2020.
Stephen Cohen##### Key Background
Shares of Palantir are now down less than 2% on the year, with Tuesday’s surge recouping much of a monthslong decline. Investors appeared to bet against Palantir as part of a broader bet against AI, with more firms raising spending projections to match booming demand for AI products. Karp himself has criticized the broader AI market, calling the industry “effing insane” in a heated interview last month while accusing leading AI firms of overcharging, exploiting customer data and jeopardizing U.S. national security.