Mitrade Insights is dedicated to providing investors with rich, timely and most valuable financial information to help investors grasp the market situation and find timely trading opportunities.

2021

Best News & Analysis Provider

FxDailyInfo

2022

Best Forex Educational Resources Global

International Business Magazine

Insights

News

Cryptocurrencies

Peter Thiel’s startup Palantir rides AI wave, gains 14% profit

Source Cryptopolitan

The AI-driven data analytics company Palantir Technologies has captured Wall Street’s attention after its stocks soared about 14% in its latest Q3 report.

Palantir’s revenue exceeded analysts’ forecasts as the AI startup reported a third-quarter revenue of over $725 million. The reported figure is about 7% more than its performance from the previous quarter and 30% more than the year before.

Palantir benefits from a growing AI market

Speaking about his company’s strong third-quarter numbers, CEO Alexander Karp attributed the performance to the “unrelenting demand for AI.” The AI market has continued to post impressive growth statistics, and companies like Palantir are beneficiaries of the surge in this emerging technology.

Following the release of the report, the company’s stock shot up by 11%. Its shares are already up about 141% this year. This growth may also be attributed to its recently launched AI platform, which powers AI-driven data analytics across various sectors including the military.

“The world is in the midst of a US-driven AI revolution that is reshaping industries and economies, and we are at the center of it,” said Karp.

Palantir seems well-positioned to take advantage of the increased demand for AI and data analytics in the defense sector. The firm lists the US government as a major customer. Its US commercial revenue is up by 54%, worth about $179 million, while its US government revenue rose by 40%.

Palantir predicts its 2024 revenue will be around $2.8 billion, and it expects to earn over $767 million in the year’s fourth quarter.

Following the company’s steep rise in 2024, it joined the S&P 500 index, which tracks the 500 largest companies in the US by market capitalization.

Wall Street wary of Palantir’s valuation

Palantir is a data analytics and machine learning firm that serves government agencies and commercial customers. It was founded in 2003 by former PayPal CEO Peter Thiel, Alex Karp, and Stephen Cohen.

Palantir’s stocks are currently trading at a price-to-sales ratio of 40 and a price-to-earnings ratio of 246, which appears to be on the high side. Some attribute this overperformance to the “S&P 500 Effect.” This set of analysts also believe the stocks are overpriced and are due to drop eventually. They cite that the shares are currently trading at about 32 times the forecasted revenue for 2025.

However, other analysts expect Palantir’s revenue to grow by 24% in 2024 and 20.6% in 2025. Palantir continues to secure government contracts and now collaborates with all five branches of the US military and the UK’s National Health Service, which would provide a stable stream of revenue and probably help keep its valuation high.

Disclaimer: For information purposes only. Past performance is not indicative of future results.

Recommended Articles

Fed hike odds near 90% into Wednesday's decision — how to trade the dollar, gold and the S&P 500 A 0.3% monthly core CPI print has lifted the market-implied probability of a 25bp Fed hike on 16 September to roughly 86.5% ~ 90%, which would be the first increase since July 2023. Here is the decision timeline, the pricing versus the forecasts, both scenarios, and the key levels for the dollar, gold and the S&P 500.

Author Suzie

Sep 14, Mon

A 0.3% monthly core CPI print has lifted the market-implied probability of a 25bp Fed hike on 16 September to roughly 86.5% ~ 90%, which would be the first increase since July 2023. Here is the decision timeline, the pricing versus the forecasts, both scenarios, and the key levels for the dollar, gold and the S&P 500.

Bitcoin falls below $75,000 as the CLARITY Act fails in the Senate — what the vote means for crypto The US Senate blocked the Digital Asset Market CLARITY Act in a 49-50 procedural vote, sending Bitcoin briefly below $75,000 — its biggest one-day drop since June. Ethereum fell more than 8%, Coinbase slid 10% and $75 billion of crypto market value evaporated. Here is what the vote was, why it failed, and the levels that matter now.

Author Suzie

Sep 16, Wed

The US Senate blocked the Digital Asset Market CLARITY Act in a 49-50 procedural vote, sending Bitcoin briefly below $75,000 — its biggest one-day drop since June. Ethereum fell more than 8%, Coinbase slid 10% and $75 billion of crypto market value evaporated. Here is what the vote was, why it failed, and the levels that matter now.

Dollar index tops 100 for the first time since July as the Fed's hawkish dot plot sinks in The U.S. dollar index broke back above 100 for the first time since 31 July after the Fed delivered its first rate hike since 2023, with the dot plot showing 16 of 18 officials expect at least one more increase this year. Here are the levels that matter for DXY, the currencies feeling it most, and what to watch next.

Author Irene Q.

Sep 17, Thu

The U.S. dollar index broke back above 100 for the first time since 31 July after the Fed delivered its first rate hike since 2023, with the dot plot showing 16 of 18 officials expect at least one more increase this year. Here are the levels that matter for DXY, the currencies feeling it most, and what to watch next.

Gold rebounds to near $4,350 on weaker US Dollar, falling oil prices Gold price (XAU/USD) rises to near $4,345 during the early Asian session on Friday. The precious metal rebounds from a six-week low amid falling oil prices and a weaker US Dollar (USD). Traders continue to assess the latest Federal Reserve (Fed) rate hike and policy cues.

Author FXStreet

Sep 18, Fri

Gold price (XAU/USD) rises to near $4,345 during the early Asian session on Friday. The precious metal rebounds from a six-week low amid falling oil prices and a weaker US Dollar (USD). Traders continue to assess the latest Federal Reserve (Fed) rate hike and policy cues.

US to delay new "overcapacity" tariffs on China — what the pause means for trade, inflation and the dollar Washington is expected to hold off announcing new tariffs over Chinese "overcapacity" until after the 24 September summit, according to Bloomberg. The postponed plan would have added 7.5% to Chinese goods, taking second-term US tariffs to around 20%. Here is what is on the table, and what a deal versus no deal would mean for the yuan, Hong Kong equities and the dollar.

Author Mitrade

Sep 18, Fri

Washington is expected to hold off announcing new tariffs over Chinese "overcapacity" until after the 24 September summit, according to Bloomberg. The postponed plan would have added 7.5% to Chinese goods, taking second-term US tariffs to around 20%. Here is what is on the table, and what a deal versus no deal would mean for the yuan, Hong Kong equities and the dollar.

Popular Symbols