Why Palantir Technologies Stock Skyrocketed (Again) Today
Written by Danny Vena for The Motley Fool -> Palantir continued the momentum that began earlier this week when the company reported its 12th consecutive quarter of accelerating revenue growth. A ho…
Palantir continued the momentum that began earlier this week when the company reported its 12th consecutive quarter of accelerating revenue growth.
A host of software companies reported better-than-expected results, quelling fears about the impact of AI on enterprise software.
Palantir Technologies (NASDAQ: PLTR) stock charged sharply higher Friday, climbing as much as 9.9%. As of 1:10 p.m. ET, the stock was still up 9.4%.
The catalyst that sent the data-mining and artificial intelligence (AI) specialist higher was evolving investor sentiment toward software stocks.
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Over the past year or so, investors have become concerned that advances in AI would ultimately decimate the software business, sending many software-as-a-service (SaaS) stocks plunging. Even Palantir, which offers AI solutions that integrate directly with customer data, wasn't immune.
In fact, the stock was hit with a double whammy, as investors weighed concerns about a slowdown in AI spending against the potential for AI to automate tasks previously performed by enterprise software.
However, Palantir reported second-quarter results on Tuesday that seemed to counter those fears, sending the stock soaring more than 27% in a single day. Revenue of $1.94 billion rose 93% year-over-year, the company's highest ever year over year growth rate, driving adjusted earnings per share (EPS) up 156% to $0.41.
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