Recommendation: Buy
| Entry Date | Symbol | Recommendation | Entry Price (USD) | Target 1 (USD) | Target 2 (USD) | Holding Duration | Position Status | Return(%)* |
|---|---|---|---|---|---|---|---|---|
| 30 May, 25 | PLTR | Buy | USD 122.77 | USD 130.0 | USD 136.0 | 2 days | Closed |
9.51%
|
*Return(%) represent the percentage change between the entry price and exit price of the recommendation.
Data Powered by EOD Historical Data (“EODHD”).
Palantir Technologies Inc. builds and deploys software platforms for the intelligence community in the United States to assist in counterterrorism investigations and operations. The company provides Palantir Gotham, a software platform which enables users to identify patterns hidden deep within datasets, ranging from signals intelligence sources to reports from confidential informants, as well as facilitates the handoff between analysts and operational users, helping operators plan and execute real-world responses to threats that have been identified within the platform. It also offers Palantir Foundry, a platform that transforms the ways organizations operate by creating a central operating system for their data; and allows individual users to integrate and analyze the data they need in one place. In addition, it provides Palantir Apollo, a software that enables customers to deploy their own software virtually in any environment. Palantir Technologies Inc. was incorporated in 2003 and is based in Denver, Colorado.
U.S. Commercial TCV Growth: U.S. commercial total contract value reached $810 million in Q1 2025, up 183% year-over-year
Revenue Growth: Total revenue grew 39% year-over-year in Q1 2025, reaching $884 million
Relatively Low GAAP EPS: GAAP earnings per share stood at $0.08, which, while positive, may be seen as modest relative to high growth expectations
Quarter-over-Quarter Revenue Growth Slowing: Despite strong year-over-year growth, total revenue only grew 7% quarter-over-quarter, indicating a deceleration
Palantir’s heavy reliance on the U.S. market, particularly its commercial segment, exposes the company to geographic concentration risk and potential volatility in government and enterprise procurement cycles
| Entry Price | Support* | Target 1 | Target 2 |
|---|---|---|---|
| 122.77 | 112.5 | 130.0 | 136.0 |
Data Source: REFINITIV, Analysis: StockNextt
*Support can be considered as an indicative stop-loss, and if prices move below that level on closing basis individuals may evaluate exiting the position depending on their risk appetite, previous holdings, and other factors considered. The support and resistance levels may need to be re-evaluated within 4-6 weeks’ time frame depending on the stock price movements from the date of recommendation on the stock.
Strong First Quarter Performance: Palantir Technologies Inc. (NASDAQ: PLTR) reported robust financial results for the first quarter ended March 31, 2025. The company recorded total revenue of $884 million, representing a 39% increase year-over-year and a 7% increase quarter-over-quarter. This growth was driven by surging demand for its AI-driven software platform across both commercial and government sectors in the United States.
U.S. Market Momentum: U.S. operations contributed significantly to Palantir’s performance, with total U.S. revenue growing 55% year-over-year to $628 million. The company’s U.S. commercial segment stood out with an impressive 71% year-over-year growth, reaching $255 million. Additionally, U.S. government revenue rose by 45% year-over-year to $373 million, reaffirming Palantir’s strong public sector relationships.
Contract Wins and Customer Expansion: The company secured 139 deals valued at $1 million or more during the quarter, including 51 deals over $5 million and 31 exceeding $10 million. Palantir also recorded its highest-ever total contract value (TCV) in U.S. commercial business at $810 million, a 183% year-over-year increase. The remaining deal value (RDV) for U.S. commercial contracts reached $2.32 billion, up 127% year-over-year and 30% quarter-over-quarter. Furthermore, customer count grew 39% year-over-year and 8% sequentially.
Profitability and Cash Generation: The company achieved a GAAP income from operations of $176 million with a 20% operating margin. Adjusted income from operations reached $391 million, reflecting a 44% margin. Net income attributable to common stockholders under GAAP was $214 million, representing a 24% margin. Palantir generated $310 million in cash from operations, with an adjusted free cash flow of $370 million, yielding a 42% margin.
Financial Strength and Efficiency: Palantir’s financial efficiency is reflected in its Rule of 40 score, which rose to 83%, underscoring strong growth combined with profitability. The company reported adjusted EBITDA of $397 million, a 45% margin. Diluted GAAP earnings per share stood at $0.08, while adjusted diluted EPS was $0.13. The company ended the quarter with $5.4 billion in cash, cash equivalents, and short-term U.S. Treasury securities, providing ample liquidity.
Upward Revision in Guidance: Based on its strong Q1 performance, Palantir raised its full-year 2025 revenue guidance to a range of $3.890 to $3.902 billion. It also increased guidance for U.S. commercial revenue to exceed $1.178 billion, implying a minimum growth rate of 68%. Adjusted income from operations is now forecasted between $1.711 and $1.723 billion, while adjusted free cash flow guidance has been raised to between $1.6 and $1.8 billion. For Q2 2025, the company expects revenue between $934 and $938 million and adjusted income from operations between $401 and $405 million.
Technical Commentary:
PLTR's stock price showed resilience at lower levels and steadily advanced, reinforced by a golden crossover of key moving averages on the daily chart, suggesting potential for short-term gains. The 14-period RSI is climbing above the midpoint, indicating growing bullish sentiment and buying interest. Furthermore, the stock has recaptured both its 21-day and 50-day Simple Moving Averages, bolstering the outlook for continued upward momentum in the near term. These moving averages are expected to serve as support levels moving forward.
As per the above-mentioned price action, recent key business and financial updates, momentum in the stock over the last month, and technical indicators analysis, a ‘Buy’ rating has been given to Palantir Technologies, Inc. (NASDAQ: PLTR) at its current market price of USD 122.77 as of May 30, 2025 (7:00 am PDT),
Data Powered by EOD Historical Data (“EODHD”).
Sector: Technology Industry: Software - Infrastructure
| Company | Change (USD) | Price (USD) | Trailing PE (x) | Forward PE (x) | Price Sales TTM (x) | Price to Book Value (x) | Enterprise Value to Revenue (x) | Enterprise Value to EBITDA (x) |
|---|---|---|---|---|---|---|---|---|
| PLTR Palantir Technologies Inc. Class A Common Stock |
2.24 1.70% | 134.36 | 248.71 | 58.48 | 18.02 | 11.77 | 16.23 | 167.02 |
| MSFT Microsoft Corporation |
7.75 1.58% | 498.84 | 37.32 | 29.94 | 13.03 | 12.45 | 13.06 | 24.59 |
| ORCL Oracle Corporation |
7.34 3.19% | 237.32 | 29.34 | 18.66 | 5.55 | 74.06 | 7.10 | 18.13 |
| ADBE Adobe Systems Incorporated |
0.84 0.22% | 379.31 | 46.32 | 26.81 | 11.51 | 16.73 | 11.55 | 31.20 |
| PANW Palo Alto Networks Inc |
4.85 2.46% | 201.82 | 44.57 | 45.05 | 11.98 | 20.70 | 11.82 | 77.11 |
Data Powered by EOD Historical Data (“EODHD”).
Markets are trading in a highly volatile zone currently due to certain macro-economic issues and prevailing geopolitical tensions. Therefore, it is prudent to follow a cautious approach while investing.
Related Risk: This report may be looked at from a high-risk perspective and a recommendation is provided for a short duration. This report is solely based on technical parameters, and the fundamental performance of the stocks has not been considered in the decision-making process. Other factors which could impact the stock prices include market risks, regulatory risks, interest rates risks, currency risks, social and political instability risks etc.
Support: A level at which the stock prices tend to find support if they are falling, and a downtrend may take a pause backed by demand or buying interest. Support 1 refers to the nearby support level for the stock and if the price breaches the level, then Support 2 may act as the crucial support level for the stock.
Target: A level at which the stock prices tend to find resistance when they are rising, and an uptrend may take a pause due to profit booking or selling interest. Target 1 refers to the nearby resistance level for the stock and if the price surpasses the level, then Target 2 may act as the crucial resistance level for the stock.
Stop-loss: It is a level to protect further losses in case of unfavourable movement in the stock prices.
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