What's Going On With Palantir Stock Tuesday?

Palantir Technologies Inc PLTR shares are trading higher on Tuesday. Here’s a look at what’s going on.

What To Know: Palantir shares are getting a lift in early trading. It’s possible that buyers are stepping in after U.S. President Donald Trump revoked an executive order from 2023 that aimed to reduce the risks of AI development.

According to Reuters, Trump on Monday revoked an executive order that required AI developers involved with national security, the economy and public health or safety to disclose safety test results to the U.S. government.

Palantir shares rallied more than 300% in 2024, buoyed by the company’s positioning in AI. The U.S. government is Palantir’s largest customer. The stock may also be up following Trump’s inauguration as investors anticipate higher defense spending under the new administration.

Palantir is due to report quarterly financial results after the market close on Feb. 3. According to estimates from Benzinga Pro, the company is expected to report earnings of 11 cents per share and revenue of $775.77 million.

Palantir shares are up approximately 70% since the company last reported earnings. Revenue jumped 30% year-over-year last quarter on continued strength in the U.S. and customer count grew 39% after the company closed 104 deals worth over $1 million during the period, driven by "unrelenting" AI demand. 

"The growth of our business is accelerating, and our financial performance is exceeding expectations as we meet an unwavering demand for the most advanced artificial intelligence technologies from our U.S. government and commercial customers,” Palantir CEO Alex Karp said in a letter to shareholders last quarter.

Check This Out: Jeff Bezos-Backed Anthropic CEO Predicts AI Will Surpass Human Intelligence By 2027, But Warns To ‘Watch Out’ For ‘Negative Consequences’

The Financial Times reported last month that Palantir and defense technology company Anduril are communicating with several competitors about potentially forming a consortium to make joint bids on U.S. government contracts.

The report suggested that SpaceX and OpenAI were among the companies in talks to join. People with knowledge of the matter reportedly said the group was planning to announce itself publicly as soon as January.

PLTR Price Action: Palantir shares were up 0.35% at $71.93 at the time of publication Tuesday, according to Benzinga Pro.

Photo: Shutterstock.