Palantir Technologies Inc. PLTR shares surged by 16.7% in pre-market on Tuesday as the company’s CEO, Alex Karp, emphasized a surge in demand for its artificial intelligence software, describing it as “untamed organic growth.”
What Happened: The Denver-based company’s shares ended 1.52% higher at $83.74 on Monday after which the company reported its fourth-quarter results. This surge came after Palantir forecasted revenue of $3.75 billion in 2025, surpassing analysts’ estimates.
The adjusted operating income is expected to be around $1.56 billion, according to a statement released on Monday. Analysts, on average, projected revenue of $3.54 billion and an operating profit of $1.37 billion.
The company’s shares have been on an upward trajectory, with a 393.36% increase over the past year and a 9.71% increase year-to-date. Palantir stock also reached a record intraday high of $85.22 on Jan. 31, 2025. The strong performance is attributed to the company’s consistent ability to meet or exceed analyst estimates for six consecutive quarters.
Why It Matters: The surge in Palantir’s shares follows a series of positive developments for the company. On Monday, the company reported fourth-quarter revenue of $827.52 million, surpassing the consensus estimate of $775.91 million. This marked the sixth consecutive quarter in which Palantir met or exceeded analyst estimates.
Palantir reported a 64% year-over-year increase in its U.S. commercial revenue, reaching $214 million, while its U.S. government revenue grew 45% to $343 million. The company anticipates U.S. commercial sales to expand by at least 54%, reaching approximately $1.08 billion in 2025.
During the company’s quarterly earnings call on Monday, CEO Karp expressed optimism about the disruption caused by Elon Musk-led DOGE. He believes it will benefit both the U.S. and Palantir, which holds major government contracts.
Additionally, market commentators Jim Cramer and Dan Ives have made bullish predictions about Palantir’s potential in the artificial intelligence revolution. Cramer cheered as the stock crossed a $100 price target, while Ives referred to the company as “the next Oracle in the AI boom.”
Price Action: Shares soared over 16.7% to $97.76, during the publication of this article, while the exchange-traded fund tracking Nasdaq 100, Invesco QQQ Trust, Series 1 QQQ edged 0.19% lower to $517.13.
READ MORE: Palantir Technologies Options Trading: A Deep Dive into Market Sentiment
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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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