Palantir: Buy On Q4 Bump, But Mind The Caveat

2025-02-07 09:25:42 ET

Summary

• Palantir Technologies Inc. has shown strong price action post-earnings, with significant QoQ and YoY growth, suggesting a continued rally through FY 2025.
• PLTR's conservative guidance for FY 2025 sets the stage for potential revenue growth beyond the 31% target, driven by robust U.S. commercial and government segment momentum.
• Despite high valuations, PLTR's revenue growth and minimal debt make it a compelling investment, especially when paired with the GraniteShares 2x Long PLTR Daily ETF (PTIR).
• Leveraging PTIR with PLTR can maximize gains during bullish rallies, doubling returns and increasing margin of safety, albeit with higher risk.

It's always a good sign when companies report QoQ growth figures alongside YoY numbers. It means they're confident of ongoing gains in the near term. And when you combine that with investors who are more than ready to reward that kind of growth, what you typically see is strong price action on earnings reports. Palantir Technologies Inc. ( PLTR ) fits that description to a tee, so it is only natural for a blowout fourth quarter report to result in stronger-than-normal price action post earnings.

We've seen this in action over the past two periods between the Q2 and Q4 2024 reports. See how the price action became stronger with each beat? I also believe the company is guiding conservatively for FY 2025. As a result, this should set it up for a continued rally through the full fiscal, and we should see some considerable gains made after Q1 2025 if my hunch is correct and management posts a strong YoY growth rate. The higher it is above the 31% full-fiscal guidance level for every quarter between now and then, the greater the chances that PLTR will end FY2025 at well over the guidance figure of $3.75 billion (which is 31% above the FY 2024 figure of $2.87 billion)....

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