Should you buy this breakout Cathie Wood now?

Palantir Technologies Founded in 2003 (PLTR) was started with the aim of providing data analytics solutions to government agencies, especially in the field of national security and defense. Its software platforms, including Gotham and Foundry, aim to integrate, analyze and visualize complex datasets, enabling users to make more informed decisions.

Over the years, Palantir has grown beyond the public sector to include industries such as healthcare, finance, and manufacturing. Ability to process large amounts of data and derive actionable insights. Artificial intelligence (AI) We have been driving those fundamentals.

The stock has risen 167% in the last year, outperforming the S&P 500. ($SPX), an increase of approximately 24%.The company reported that its stock continued to have a strong quarter. Up 32% year-to-date.

Palantir Stock Account 2.8% of ARK Innovation ETF (Arcuku), run by renowned investor Cathie Wood. Mr. Wood is known for making momentum investments in high-growth, disruptive businesses.

While many Wall Street analysts remain skeptical of Palantir's stock due to its high price, I believe Palantir is undervalued and has a lot of room for growth. Let's see what the bulls and bears are saying about PLTR stock.

Palantir bull incident

Palantir's AIP (artificial intelligence platform) has been a key factor in the company's success. The company has a strong presence in the government sector, with contracts with agencies such as the Department of Defense and the CIA, providing a steady source of revenue. account for 54% of total income. Additionally, governments' increasing emphasis on data-driven decision-making bodes well for Palantir's long-term success in this space.

In the latest one, 4th quarter results, the government sector generated revenue of $324 million, an 11% increase from the previous year. Sales increased 14% year on year to $1.2 billion. Total revenue increased 20% to $608 million, and full-year revenue rose 17% year over year to $2.23 billion. In the fourth quarter, the company reported net income of $93 million under GAAP (Generally Accepted Accounting Principles), its fifth consecutive quarter of profit.

Besides Palantir Continuous 3 year contract The company has several other agreements with the U.S. Department of Defense. Government agency.Recently, the company created another bag $178.4 million Contracted by the U.S. Army as part of the Tactical Information Target Access Node (TITAN) program

Palantir's government contracts provide stability, but they also expose the company to regulatory and budget risks. Changes in government priorities and policies may impact the sector's revenue streams.

Therefore, there is a need to expand the commercial segment that currently contributes to sales. 46% of total revenue. The company cooperated with CAZ Investments and PwC So that they can use that AIP platform. Additionally, the company's recent strategic partnerships include: oracle (ORCL) “Providing secure cloud and AI solutions” can be a game-changer for businesses.

Management expects these transactions to be accretive to U.S. commercial revenues. 40% will exceed $640 million in 2024. This could lead to total annual revenue of $2.65 billion to $2.69 billion, an 18% to 20% year-over-year increase.

Despite the rapid expansion of its AI products, the company's financial position remains strong. 2023 ended as follows. $3.7 billion $731 million in cash, cash equivalents, Treasuries, and adjusted amounts Free cash flow (FCF) balance. The company expects its 2024 adjusted FCF to be in the following range: 800 million dollars And $1 billion.

Palantir Stock: What is it? tWhat does Wall Street think?

Wall Street has mixed views on PLTR stock. Mones Crespi Hard Analyst Brian White recently lowered his price target for Palantir stock from $20.00 from “neutral” to “sell,” citing PLTR's “extremely high valuation.” The analyst believes the stock has “experienced a meteoric rise driven by the AI ​​generation rocket, but now it's time to get back to reality.”

moreover, Citi Analyst Tyler Radke maintained his “hold” rating on PLTR stock, citing the company's recent quarterly results and new government contracts leading to higher government revenue as positive factors. However, analysts gave the company a $20 price target and cautioned about the stock's valuation relative to its peers.

For context, the company's stock currently trades at 69 times expected 2024 earnings and 18 times expected 2024 sales. Analysts predict that Palantir's 2024 sales and profits will increase by 20.4% and 30.6%, respectively. In 2025, sales and profits are estimated to further increase by 20.4% and 20.3% year-on-year.

On the bullish side, Bank of America Analyst Mariana Perez raised her price target on PLTR from $24 to $28 and maintained a “strong buy” rating following the new government contract. The analyst believes that “this victory solidifies Palantir's position as the AI ​​prime in the defense world.”

Overall, Wall Street rates PLTR as “.”possessionOf the 14 analysts covering the stock, 2 say it's a “strong buy,” 1 says it's a “moderate buy,” 5 say it's a “hold,” 1 says it's a “moderate sell,” and 5 say it's a “moderate sell.” suggests a “strong buy.” sell. “

Palantir is well above its average price target of $20.69.the High price target is $35 That means it could rise 54.3% over the next 12 months.

PLTR Stock Conclusion

Palantir's innovative AI platform has been widely praised by both governments and private companies. As AI advances, this innovative software platform still has a long way to go. However, the data analytics market is highly competitive. Palantir's long-term success is determined by its ability to thrive through the complexities of a data-driven world.

Despite concerns about the stock's overvaluation, Palantir could remain a top AI candidate for the long term, depending on your risk tolerance.

On the date of publication, Sushree Mohanty I had no position (directly or indirectly) in any of the securities mentioned in this article. All information and data in this article is for informational purposes only. Please see the Barchart Disclosure Policy for more information. here.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Summarize this content to 100 words
Palantir Technologies Founded in 2003 (PLTR) was started with the aim of providing data analytics solutions to government agencies, especially in the field of national security and defense. Its software platforms, including Gotham and Foundry, aim to integrate, analyze and visualize complex datasets, enabling users to make more informed decisions.Over the years, Palantir has grown beyond the public sector to include industries such as healthcare, finance, and manufacturing. Ability to process large amounts of data and derive actionable insights. Artificial intelligence (AI) We have been driving those fundamentals.

The stock has risen 167% in the last year, outperforming the S&P 500. ($SPX), an increase of approximately 24%.The company reported that its stock continued to have a strong quarter. Up 32% year-to-date.Palantir Stock Account 2.8% of ARK Innovation ETF (Arcuku), run by renowned investor Cathie Wood. Mr. Wood is known for making momentum investments in high-growth, disruptive businesses.While many Wall Street analysts remain skeptical of Palantir's stock due to its high price, I believe Palantir is undervalued and has a lot of room for growth. Let's see what the bulls and bears are saying about PLTR stock.www.barchart.com
Palantir bull incidentPalantir's AIP (artificial intelligence platform) has been a key factor in the company's success. The company has a strong presence in the government sector, with contracts with agencies such as the Department of Defense and the CIA, providing a steady source of revenue. account for 54% of total income. Additionally, governments' increasing emphasis on data-driven decision-making bodes well for Palantir's long-term success in this space.

In the latest one, 4th quarter results, the government sector generated revenue of $324 million, an 11% increase from the previous year. Sales increased 14% year on year to $1.2 billion. Total revenue increased 20% to $608 million, and full-year revenue rose 17% year over year to $2.23 billion. In the fourth quarter, the company reported net income of $93 million under GAAP (Generally Accepted Accounting Principles), its fifth consecutive quarter of profit. Besides Palantir Continuous 3 year contract The company has several other agreements with the U.S. Department of Defense. Government agency.Recently, the company created another bag $178.4 million Contracted by the U.S. Army as part of the Tactical Information Target Access Node (TITAN) programPalantir's government contracts provide stability, but they also expose the company to regulatory and budget risks. Changes in government priorities and policies may impact the sector's revenue streams.Therefore, there is a need to expand the commercial segment that currently contributes to sales. 46% of total revenue. The company cooperated with CAZ Investments and PwC So that they can use that AIP platform. Additionally, the company's recent strategic partnerships include: oracle (ORCL) “Providing secure cloud and AI solutions” can be a game-changer for businesses.Management expects these transactions to be accretive to U.S. commercial revenues. 40% will exceed $640 million in 2024. This could lead to total annual revenue of $2.65 billion to $2.69 billion, an 18% to 20% year-over-year increase.

Despite the rapid expansion of its AI products, the company's financial position remains strong. 2023 ended as follows. $3.7 billion $731 million in cash, cash equivalents, Treasuries, and adjusted amounts Free cash flow (FCF) balance. The company expects its 2024 adjusted FCF to be in the following range: 800 million dollars And $1 billion.Palantir Stock: What is it? tWhat does Wall Street think?Wall Street has mixed views on PLTR stock. Mones Crespi Hard Analyst Brian White recently lowered his price target for Palantir stock from $20.00 from “neutral” to “sell,” citing PLTR's “extremely high valuation.” The analyst believes the stock has “experienced a meteoric rise driven by the AI ​​generation rocket, but now it's time to get back to reality.”moreover, Citi Analyst Tyler Radke maintained his “hold” rating on PLTR stock, citing the company's recent quarterly results and new government contracts leading to higher government revenue as positive factors. However, analysts gave the company a $20 price target and cautioned about the stock's valuation relative to its peers.For context, the company's stock currently trades at 69 times expected 2024 earnings and 18 times expected 2024 sales. Analysts predict that Palantir's 2024 sales and profits will increase by 20.4% and 30.6%, respectively. In 2025, sales and profits are estimated to further increase by 20.4% and 20.3% year-on-year. On the bullish side, Bank of America Analyst Mariana Perez raised her price target on PLTR from $24 to $28 and maintained a “strong buy” rating following the new government contract. The analyst believes that “this victory solidifies Palantir's position as the AI ​​prime in the defense world.”

Overall, Wall Street rates PLTR as “.”possessionOf the 14 analysts covering the stock, 2 say it's a “strong buy,” 1 says it's a “moderate buy,” 5 say it's a “hold,” 1 says it's a “moderate sell,” and 5 say it's a “moderate sell.” suggests a “strong buy.” sell. “Palantir is well above its average price target of $20.69.the High price target is $35 That means it could rise 54.3% over the next 12 months.www.barchart.com
PLTR Stock ConclusionPalantir's innovative AI platform has been widely praised by both governments and private companies. As AI advances, this innovative software platform still has a long way to go. However, the data analytics market is highly competitive. Palantir's long-term success is determined by its ability to thrive through the complexities of a data-driven world.
Despite concerns about the stock's overvaluation, Palantir could remain a top AI candidate for the long term, depending on your risk tolerance. On the date of publication, Sushree Mohanty I had no position (directly or indirectly) in any of the securities mentioned in this article. All information and data in this article is for informational purposes only. Please see the Barchart Disclosure Policy for more information. here.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

https://www.nasdaq.com/articles/should-you-buy-this-breakout-cathie-wood-stock-now Should you buy this breakout Cathie Wood now?