Palantir stock price dipped after earnings, but analysts are bullish. Is this a buying opportunity for long-term investors?
Analysts are calling a recent sell-off in Palantir Technologies (PLTR) stock a buying opportunity, despite the company’s earnings report meeting expectations but failing to raise guidance higher.
Palantir is a leading provider of data analytics software to government agencies and commercial clients. While the company’s stock price dropped following its recent earnings report, analysts believe the decline is overdone and that Palantir has a bright future ahead.
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Here’s a breakdown of the key points driving analyst optimism on Palantir:
Growth in Commercial Business
Palantir’s commercial business is now nearly half of its total sales, indicating a positive shift away from its reliance on government contracts.
Strong USV Market Potential
The global market for unmanned surface vehicles (USVs) is expected to experience significant growth, and Palantir is a partner with Hyundai in this promising area.
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Increasing Deal Sizes and Strong RPO
Palantir’s customers are signing bigger deals, and the company boasts a healthy remaining performance of obligations (RPO).
Overall Growth in AI Software Demand
The demand for AI software is on the rise and is expected to continue its upward trajectory.
While some analysts have adjusted their short-term earnings estimates for Palantir downward, they still maintain a bullish long-term outlook on the company’s growth potential.
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It’s important to note that Palantir has faced criticism for stock-based compensation leading to dilution. However, the company is actively working to address this issue.
Overall, analysts view Palantir as a compelling long-term investment opportunity, and the recent stock price pullback is seen as an attractive entry point.
Investors seeking to add a growth stock to their portfolio should strongly consider Palantir. As always, conducting your own research is paramount before making any investment decisions.
