What Happened:
Shares of data-mining and analytics company Palantir (NYSE:PLTR) jumped 15.1% in the after-market session after the company reported first-quarter results that beat analysts' revenue, free cash flow, adjusted EBITDA, and earnings per share estimates. Customer growth also came in strong, rising by 41% year-over-year and 7% sequentially. However, revenue guidance for the next quarter came in below Consensus. Despite this, management noted that the company is expected to remain profitable every quarter through the end of the year. Additionally, the company provided some updates on the adoption of its AI technology, stating that "the depth of engagement with and demand for Palantir's new Artificial Intelligence Platform (AIP) is without precedent." Overall, the company's Q1 results continued to highlight the improvements in cash management and profitability.
What is the market telling us:
Palantir's shares are quite volatile and over the last year have had 49 moves greater than 5%. But moves this big are very rare even for Palantir and that is indicating to us that this news had a significant impact on the market's perception of the business.
Palantir is up 45.1% since the beginning of the year, but at $9.21 per share it is still trading 19.6% below its 52-week high of $11.45 from August 2022. Investors who bought $1,000 worth of Palantir's shares at the IPO in September 2020 would now be looking at an investment worth $975.79.
Is now the time to buy Palantir? Access our full analysis of the earnings results here, it's free.