Palantir Stock Is Trending Today: What's Going On?

Palantir Technologies Inc (NASDAQ:PLTR) shares are trading higher Monday ahead of earnings scheduled after the bell. Here’s what you need to know before the report.

What To Know: Palantir is set to report financial results for the second quarter after the market close on Monday. The AI software company is expected to report adjusted earnings of 14 cents per share and revenue of $939.71 million, according to estimates from Benzinga Pro.

Palantir has met or exceeded analyst expectations in seven consecutive quarters heading into Monday’s print as the company has continued to benefit from strong AI-related tailwinds.

Last quarter, Palantir said U.S. Commercial revenue jumped 71% year-over-year and U.S. Government revenue increased 45% year-over-year driven by continued demand for its Artificial Intelligence Platform. CEO Alex Karp said at the time that Palantir was in the middle of a "tectonic shift" in the adoption of its software.

Palantir shares are up about 24% since the company last reported quarterly results. Palantir has a strong momentum score of 99.13, according to Benzinga Pro data. Recent analyst coverage suggests the stock may have more room to run.

Loop Capital analyst Mark Schappel maintained Palantir with a Buy rating last week and raised the price target from $155 to $178. Piper Sandler analyst Brent Bracelin also initiated coverage with an Overweight rating and set a price target of $170.

Piper Sandler sees Palantir as a long-term winner in the AI race. The analyst firm believes the company’s unique combination of strong growth and expanding margins set it up for long-term success, but warned that the company’s lofty valuation could spur volatility in the near term.

Wedbush’s Dan Ives also raised the price target to $160 last month as the analyst expects Palantir to be a core winner of the anticipated AI spend over the next few years.

Ives predicted earlier this year that Palantir could climb to a $1 trillion market cap within two to three years. Shares would need to reach approximately $427 for Palantir to hit that valuation.

PLTR Price Action: Palantir shares are trading near all-time highs as the company prepares to report second-quarter results. The stock was up 3.63% at $159.90 at the time of publication Monday, according to Benzinga Pro.

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