Palantir experiences a 9% increase and sets a new record following Nasdaq announcement.
- On Friday, Palantir's stock surged after the company announced its plans to shift from the New York Stock Exchange to the Nasdaq.
- Since the company's better-than-expected earnings report on Monday, the day before Election Day, the shares have increased by more than 50%.
- The company announced that its stock will commence trading on the Nasdaq on November 26th, retaining its ticker symbol "PLTR."
On Friday, shares of the software company for the military continued their hot streak, surging up to 9%, reaching a new record, after the company announced plans to move its listing from the New York Stock Exchange to the Nasdaq.
The stock price of Palantir surpassed $64.50 in the afternoon, increasing the company's market cap to $147 billion. Since the company's better-than-expected earnings report last week, the shares have increased by more than 50%, and their value has almost quadrupled this year.
Palantir announced on Thursday that it plans to begin trading on the Nasdaq on November 26, using its existing ticker symbol "PLTR." Although changing stock exchanges does not affect a company's financials, 8VC partner Alexander Moore, who sits on Palantir's board, believes the move could benefit retail investors because it will require billions of dollars in purchases by exchange-traded funds.
Moore wrote, "Our retail diamondhands are our top priority and everything we do is to reward and support them."
Palantir exceeded expectations in third-quarter earnings and revenue, and forecasted higher-than-anticipated earnings for the fourth quarter. CEO Alex Karp stated in the earnings release that the company's success was due to the high demand for artificial intelligence technologies.
In 2021, the US government's revenue increased by 40% to $320 million, while commercial revenue rose by 54% to $179 million. During the earnings call, the company announced a five-year contract to expand its Maven technology across the US military. Palantir launched Maven in 2017 to provide AI tools to the Department of Defense.
The post-earnings rally coincides with the period following last week's presidential election. Palantir is viewed as a potential beneficiary due to its links to the Trump camp. Co-founder and Chairman Peter Thiel was a significant supporter of Donald Trump's first successful campaign, although he later had a public falling out with Trump.
In June, Thiel stated that if he were forced to choose between Trump and not voting, he would vote for Trump.
Palantir's value has increased by approximately $5.2 billion since the earnings report and $2 billion since the election.
In September, it was announced that Palantir would become a part of the S&P 500 stock index, as S&P Global made the declaration.
Analysts at Argus Research believe the stock has been pushed too high due to the current financials and growth projections, despite having a long-term buy rating on the stock. In a report last week, they stated that the company had a "stellar" quarter, but downgraded their 12-month recommendation to a hold.
The company's stock may be overvalued based on its current fundamentals, according to analysts.
WATCH: Palantir hits record as defense adopts AI tech
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