2024-02-19 04:28:57 ET
Summary
- Palantir's Q4 earnings confirm its potential for 4 straight quarters of operating profitability, increasing its chances of joining the S&P 500.
- The company's focus on healthcare contracts and its success in the sector could be a key driver for S&P 500 inclusion.
- Palantir's revenue growth, operational profitability, and revenue diversification efforts position it for a positive future and make it a strong buy.
Investment Thesis
After Palantir ( PLTR )’s Q3 report last year, I noted that the firm is on the cusp of 4 straight quarters of operating profitability and this would probably be needed to get S&P 500 inclusion. Q4 earnings confirmed this and bolstered my case with net operating income reaching $65.8 million (net income was $93.4 million).
After a strong Q4 and outlook for 2024, I believe the AI leader stands a good chance to gain inclusion to the S&P 500 this year (this negates my earlier concerns about interest income distorting operating results)....
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Palantir: I Believe Healthcare Is The Key For S&P 500 Inclusion