Dubbed the Messi of AI growth, Palantir Technologies Inc. (NASDAQ:PLTR) has had a remarkable couple of years. The stock soared more than 45% this month alone, demonstrating how far it has come from being a government-focused contracting and consulting firm to an AI-driven data analytics software company. Let’s look at all the key factors that made November an eventful month for Palantir Technologies Inc. (NASDAQ:PLTR).
Kicking off the month with its earnings report on November 4th, Palantir’s stock surged 23% the next day, reflecting investor enthusiasm over the company’s robust third-quarter 2024 report. Analysts anticipated adjusted earnings per share (EPS) of $0.09 on revenue of $701.1 million, whereas Palantir Technologies Inc. (NASDAQ:PLTR) reported an adjusted EPS of $0.10 and revenue of $725.5 million, surpassing both projections. The company also outperformed its revenue guidance of $697 million to $701 million.
An executive in a suit on the floor of a trading exchange, with screens of stock prices in the background.
The company’s “unbridled demand” for its recently released Artificial Intelligence Platform (AIP) proved effective in an otherwise choppy software demand environment. Wedbush analysts cited Palantir’s latest update as a “game changer quarter” with AIP monetization as a “major growth driver”. Additionally, Palantir has also emerged as a “Trump trade”, driven by the expectations that a Republican administration led by Donald Trump would translate to higher federal spending in areas where Palantir operates. This is because the US government is Palantir’s largest client.
Palantir’s stock demonstrates strong potential for sustained growth, bolstered by a recent major announcement that could significantly impact the company’s trajectory. On 14th November, the company declared that it would be moving to the NASDAQ from the New York Stock Exchange. The stock has begun trading on the exchange starting today, November 26th.
Even though changing listing sites does not alter a company’s fundamentals, it may increase demand from exchange-traded funds (ETFs), which are required to adjust their holdings based on index requirements. The move seems calculated to appeal to retail investors. It also reinforces Palantir’s image as a strong force in the AI industry, with the NASDAQ mostly affiliated with the tech sector. All in all, November has proved to be a pivotal month for Palantir, reinforcing its status as a leader in the AI-driven space.
Palantir (PLTR) is not on our list of the 31 Most Popular Stocks Among Hedge Funds. As per our database, 43 hedge fund portfolios held PLTR at the end of the third quarter which was 44 in the previous quarter. While we acknowledge the potential of PLTR as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than PLTR but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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Disclosure: None. This article is originally published at Insider Monkey.
