DASTY - Palantir: Not As Expensive As It Looks
2024-05-15 23:15:50 ET
Summary
- Palantir's stock dropped after Q1 2024 earnings due to lower-than-expected Q2 guidance, but the overall growth story remains intact.
- Q1 earnings beat estimates, with increased revenue and net income, and strong growth in customer base and deal values.
- PLTR appears undervalued based on its PEG ratio, and its potential inclusion in the S&P 500 could further boost its stock price.
Introduction
Palantir Technologies' ( PLTR ) stock price dropped after its Q1 2024 earnings were announced. Interestingly, it was not the earnings themselves that startled investors. Instead, their less-than-expected guidance for Q2 caused the stock to drop by up to 10% on the following trading day. To us, this reaction seems a bit exaggerated. In fact, Palantir raised its outlook for the full year and crossed the $100M net income mark for the first time during Q1.
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