Palantir's Shares Soar After Boosted Guidance

Palantir Technologies, a data analytics software company, saw its shares surge by a whopping 23% on Tuesday, setting a new record high. This jump came after the company released impressive third-quarter results and optimistic future predictions. The stock price hit $51. 19, surpassing its previous peak of $45. 14 from the week before. This significant increase was the biggest since February 6, when shares rose by 30%. The company's revenue grew by 30% to reach $726 million, compared to the same period last year. This is notable because it exceeded analysts' average expectation of $701 million. The adjusted earnings per share were 10 cents, which was also better than the expected 9 cents. Analysts from Deutsche Bank attributed this success to better-than-expected performance from the U. S. Government sector, driven by a high demand for artificial intelligence tools. Palantir has been investing in AI for a long time and is known for its secure data integration capabilities, which gives it an edge in the market. The net income of Palantir was $143. 5 million, or 6 cents per share, showing a significant increase from the $71. 5 million, or 3 cents per share, from the same quarter last year. The company forecasted its fourth-quarter revenue to be between $767 million and $771 million, which was higher than the $741. 4 million analysts had anticipated. Palantir aims to generate more than $687 million in U. S. commercial revenue for the year, which would be about 24% of the total. Bank of America increased its price target for Palantir from $50 to $55 and maintained its "buy" rating. Analysts from Bank of America believe that as more companies realize the benefits of Palantir's AI-enabled products, the adoption will only grow, strengthening the company's competitive edge.