Here’s how artificial intelligence makes Palantir shine on Wall Street
Palantir shares gained over 25% yesterday on the stock market, after the publication of the quarterly report. CEO Alex Karp said the demand for great language models in the United States “continues to be relentless.”
Strong demand for artificial intelligence drives Palantir's revenues and shares rise by double digits on Wall Street.
Palantir shares rose more than 25% on Tuesday after the U.S. data mining company released fourth-quarter earnings a day earlier that detailed strong demand for its artificial intelligence offerings, CNBC notes.
The Denver-based company is known for its work supporting national defense. For those who have never heard of it before, just think that Palantir technology is used by the American border police, Ice, to detain migrants until military missions in Afghanistan.
In a letter to shareholders, CEO Alex Karp (pictured) said demand for large language models in the United States "continues to be relentless."
All the details.
THE NUMBERS OF THE FOURTH QUARTER
The software company that offers services for intelligence agencies recorded revenues of 608.4 million dollars, up 20%, against 602.4 million of expectations, with an adjusted earnings per share of 8 cents, equal to consensus, just as the guidance for 2024 is equal to the consensus. The good result is mainly due to the development of the artificial intelligence platform.
THE COMPANY'S POSITION
“I have never before seen the level of enthusiasm and customer demand that we are currently seeing from [artificial intelligence platforms] in U.S. commercials,” Palantir CFO Ryan Taylor told investors during the company's earnings call Monday evening.
THE EXHIBITION FOR THE AIP PLATFORM
Palantir has been expanding its artificial intelligence platform, or AIP, and Karp said the company did nearly 600 pilots with the technology last year.
And according to Palantir, it's a major reason why U.S. trade revenue is expected to grow nearly 40% in 2024. It's also why the stock is up more than 100% over the past year as l The AI euphoria has boosted other tech stocks as well.
THE RALLY FOR THE PALANTIR TITLE
Palantir shares jumped 27% to above $21 on Tuesday, recording the largest daily percentage gain on record, the Wall Street Journal reported.
The company's stock has rallied for much of the past year. Not only that, shares have nearly doubled in the 12 months leading up to Monday's earnings report.
ANALYSTS COMMENT
“We are incredibly bullish on Palantir,” Morningstar equity analyst Malik Ahmed Khan told Yahoo Finance Live . “If you look at our forecasts, you would see that we are above consensus on profitability, revenue, etc.”
“At the same time,” he added, “we cannot rationalize Palantir's current valuation in the base case.”
Jefferies equity analyst Brent Thill admitted in a research note following the release that AIP growth is exceeding expectations. But even after upgrading the stock to a Hold rating, Thill still warned about the cost of the stock. “The biggest concern is valuation with [the] stock trading at a 23% premium to the large-cap average,” Thill wrote.
Bank of America analysts reiterated their buy rating on the stock, CNBC reports. While AIP is still in its infancy, they believe it is already impacting society in “significant ways.” Analysts said they expect Palantir's momentum with AI to continue and also see "significant opportunities" for the company's software within the U.S. government.
This is a machine translation from Italian language of a post published on Start Magazine at the URL https://www.startmag.it/innovazione/ecco-come-lintelligenza-artificiale-fa-brillare-palantir-a-wall-street/ on Wed, 07 Feb 2024 06:45:08 +0000.