Palantir Stock Surges: PLTR Rockets Higher Today

Palantir's stock soars 28.5% after strong Q4 results, highlighting growing demand for AI platform. Revenue, billings, and free cash flow exceed expectations.

Shares of Palantir (NYSE:PLTR) surged 28.5% in the morning session following the company's strong fourth-quarter results. The company expects revenue growth to accelerate in the next fiscal year, driven by increasing demand for its new artificial intelligence platform (AIP), which was launched in 2023. Notably, Palantir has improved the deployment time for AIP and integration with client data, reducing it from "weeks and months to as little as a few hours." Adjusted operating income exceeded expectations, indicating that the company is achieving higher topline growth without sacrificing profits. Additionally, Palantir's revenue, billings, and free cash flow surpassed Wall Street's expectations, with an improvement in gross margin. The US commercial business was a significant contributor to the solid performance, with revenue in the segment growing 70% year on year and 12% sequentially.

Looking ahead, Palantir expects the US commercial business to grow at least 40% in 2024. However, the revenue guidance for the next quarter missed analysts' expectations. Despite this, it was a very solid quarter for Palantir.

The company's shares are highly volatile, with 42 moves greater than 5% over the last year. This news had a significant impact on the market's perception of the business, with rare significant moves. Notably, the stock gained 15.1% nine months ago when the company reported first-quarter results that beat analysts' estimates. Customer growth also remained strong, with a 41% year-over-year increase and 7% sequential growth. Although revenue guidance for the next quarter was below consensus, management expects the company to remain profitable every quarter through the end of the year. Palantir also provided updates on the adoption of its AI technology, noting unprecedented demand for its new AIP.

Since the beginning of the year, Palantir's shares have risen by 26.4%, trading close to its 52-week high of $21.34 from November 2023. Investors who bought $1,000 worth of Palantir's shares at the IPO in September 2020 would now be looking at an investment worth $2,206.

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