Palantir Technologies (NYSE:PLTR) has been in the spotlight recently with strong opinions from both bulls, noting its improved profitability, and bears, wary of its slowing revenue growth.
Palantir’s integration with artificial intelligence (AI) has added to the buzz, marking its significant place in the market.
Following a peak on Aug. 1, PLTR stock saw a pullback but has still boasted an impressive 134% growth in 2023, despite the volatile nature of the Nasdaq. As the financial world waits for PLTR’s third-quarter earnings on Nov. 2, there’s anticipation for a 6-cent adjusted profit, marking a jump from its previous year’s earnings. However, experts are also foreseeing a slowdown in revenue growth, predicting a 16% increase to $556 million.
Outside of its AI ventures, PLTR is on the cusp of potentially securing a major contract with the UK’s National Health System (NHS). This follows their prior collaboration during the COVID-19 crisis. With a bigger contract worth approximately $595 million on the horizon, industry analysts view Palantir as the likely contender.
Palantir’s (NYSE:PLTR) foray into the AI sector has been expansive, especially with government entities for intelligence, counterterrorism, and military purposes. But what’s more intriguing is the company’s pivot into commercial sectors such as healthcare, energy, and manufacturing. Their “Artificial Intelligence Platform” revealed earlier this year now claims 150 users, a number that grew by 50% just within a month.
In a move signaling confidence in its own stock, the company has set aside a whopping $1 billion for PLTR stock buybacks. Even though the stock currently trades below its all-time high from January 2021, the company’s unique governance structure, giving long-term control to co-founders through super-voting rights, presents a unique proposition.
Adding layers to its diverse offerings, Palantir Technologies (NYSE:PLTR) provides three distinct platforms: Palantir Gotham for government agencies, Palantir Metropolis for financial entities, and Palantir Foundry for corporate clients. With a significant chunk (around 60%) of its revenue stemming from government agencies, the pressure from declining growth rates in recent years is palpable.
Palantir Technologies’ strategies for expansion are evident in their recent endeavors. The acquisition of a joint venture in Japan and collaboration with tech giants Microsoft and IBM underscores their ambition. Yet, the upcoming renewals of large U.S. government contracts and the associated unpredictability pose challenges.
As investors eye Palantir’s technical standing, its Relative Strength Rating and Composite Rating are notable. However, concerns linger as PLTR stock has drifted below its 50-day moving average.
In conclusion, while Palantir Technologies (NYSE:PLTR) stands on the precipice of technological advancements, the upcoming times will truly test its resilience in the financial markets.
Featured Image – Freepik
Author Kristen Moran 
