PLTR - Palantir Stock Pops Then Drops As Investors Digest Q1 2024 Report

2024-05-06 18:59:13 ET

Summary

• Palantir Technologies Inc. delivered a beat and raise in its Q1 2024 report; however, investors are likely disappointed by the lack of AI-powered hypergrowth.
• The hype around Palantir is reflected in the company's valuation of ~76x forward P/E, but this hype is unjustified for a business growing top-line at just ~21% y/y.
• While Palantir's management raised guidance for 2024, the new revenue guide fell short of street estimates.
• Palantir's earnings call will likely include a lot of hyperbole from its fiery CEO, Alex Karp; however, I expect the after-hours sell-off in PLTR stock to stick as it is well deserved.

Introduction

In the immediate aftermath of reporting its Q1 2024 earnings , Palantir Technologies Inc. (NYSE: PLTR ) popped up by +3.5%, only to reverse sharply lower in a jiffy:

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