Palantir (NAS100:PLTR) releases third-quarter earnings on Monday, and traders predict a volatile move from the company’s stock.
PLTR – Daily Chart
PLTR stock jumped more than 4% on Friday’s open to trade at new all-time highs of $200. The previous high at $190 is now support, and earnings weakness would then look to the $170.50 level.
Palantir has been one of the big market movers in the AI trend this year, and traders expect a swing of up to 11% to the upside or downside after earnings. That is in line with the stock’s average 10% move over the previous four quarters.
The Q3 earnings are released after the market closes on Monday, and Wall Street analysts expect the company to report earnings of $0.17 per share, up 70% from a year ago. Revenues are also expected to jump by almost 50% year-over-year to $1.09 billion.
Ahead of the latest update, Piper Sandler analysts raised their price target to $201 from $182 due to continued upside in the AI stock’s financial potential. Meanwhile, Jeffries said the company’s valuation remains high, leaving very little margin for error in the report if growth slows. However, they said that “peak growth” has not yet been realized, and there is no “catalyst to halt current momentum”.
Analysts will be looking for momentum in the earnings report, with over $7 billion in signed contracts reported recently, alongside $4 billion in IDIQ (Indefinite Delivery, Indefinite Quantity) deals. The company’s stock price has been driven by triple-digit growth in commercial bookings this year, and it also benefits from government and military contracts.
Citi analysts were also positive on the company, saying:
“Our intra-Q checks from partners and customers were positive, including checks from Oracle and Snowflake conferences intra-Q, where partners reported uptick in collaborative deals”.
