What's Going On With Palantir Stock Wednesday?

Palantir Technologies Inc PLTR shares are trading lower Wednesday amid overall tech weakness following Alphabet Inc’s GOOG quarterly earnings results.

What Happened With GOOG: Google parent Alphabet said second-quarter revenue increased 14% year-over-year, driven by ongoing strength in Search and momentum in Cloud. The tech giant reported revenue of $84.742 billion, beating the consensus estimate of $84.202 billion, and earnings of $1.89 per share, beating analyst estimates of $1.85 per share, but shares moved lower.

• Google Search revenue was $48.509 billion in the second quarter.
• Google Advertising revenue was $64.616 billion.
• YouTube advertising revenue came in at $8.663 billion.
• Google Cloud revenue totaled $10.347 billion.

“We are innovating at every layer of the AI stack. Our longstanding infrastructure leadership and in-house research teams position us well as technology evolves and as we pursue the many opportunities ahead,” said Sundar Pichai, CEO of Alphabet.

See Also: Google Analysts See Upside For Alphabet Stock Following Q2 Earnings As Generative AI Drives Accelerated Search Growth

Why It Matters: Palantir shares are selling off Wednesday following recent strength. The stock made a series of new 52-week highs in recent weeks as software and AI continued to be strong themes for the market.

The AI data company’s stock is up nearly 60% year-to-date largely driven by continued momentum surrounding the company's positioning in the AI space. Palantir stock remains below the highs it set in early 2021, despite a strong start to 2024.

Palantir will report second-quarter financial results on Aug. 5. Benzinga Pro estimates earnings of 8 cents per share and revenue of $652.141 million.

In the first quarter, Palantir beat analyst estimates as revenue grew 21% year-over-year. The company also delivered its sixth consecutive quarter of GAAP profitability. Palantir guided for second-quarter revenue of $649 million to $653 million and full-year revenue of $2.677 billion to $2.689 billion.

Last week, Wedbush analyst Dan Ives set a new bull-case price target of $50 on Palantir shares, noting that the Palantir story "remains very undervalued and misunderstood by the Street."

"With AI spending taking up more spending in IT budgets as more organizations learn how to properly implement this tech, we believe the Messi of AI Palantir is in a prime spot to continue expanding its pipeline as the company provides more use cases," Ives said in a note on Thursday.

PLTR Price Action: Palantir shares were down 6.86% at $26.84 at the time of publication, according to Benzinga Pro.

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Photo: Cory Doctorow from Flickr.