What's Going On With Palantir Stock?

Palantir Technologies Inc. PLTR shares are trading slightly lower Thursday at $128.43 as of the time of writing, but remain near record highs after a nearly 500% rally over the past year.

What To Know: The stock is up more than 32% in the last month alone, significantly outperforming broader indexes like the S&P 500, which gained around 9% over the same period, and even broader technology funds, like the SPDR Select Technology ETF XLK, which gained approximately 17%.

The move has been driven by strong investor demand for AI-related stocks and Palantir's position as a key player in government and enterprise analytics. The company reported $1.3 billion in free cash flow last year and has continued to secure new contracts in both public and private sectors, fueling significant revenue growth in recent years. The company’s current market cap stands at around $300 billion.

Palantir reported results for the first quarter last week, beating estimates on the top and bottom lines for the seventh consecutive quarter.

Total revenue was up 39% year-over-year as U.S. revenue grew 55% year-over-year to $628 million. U.S. Commercial revenue grew 71% year-over-year to $255 million and U.S. Government revenue climbed 45% year-over-year to $373 million.

Palantir’s customer count grew 39% year-over-year and 8% on a quarter-over-quarter basis. The company closed out the quarter with $5.4 billion of cash, cash equivalents and short-term U.S. treasury securities.

Palantir guided for second-quarter revenue in the range of $934 million to $938 million versus estimates of $899.12 million. The company also raised its full-year guidance as CEO Alex Karp highlighted a “tectonic shift” in the adoption of the company’s software.

“We are delivering the operating system for the modern enterprise in the era of AI,” Karp said.

Despite a slight pullback on Thursday, the stock continues to reflect investor confidence in the company's AI-driven growth strategy, hitting new all-time highs earlier this week.

PLTR Price Action: Palantir shares were down 1.36% at $128.43 at the time of publication Thursday, according to Benzinga Pro.

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