Palantir Stock Skyrockets as AI Platforms Fuel Q4 Sales Growth—Key Price Levels to Watch

Palantir Technologies Inc.

Palantir Technologies (PLTR) shares jumped in premarket trading Tuesday after the big data analytics software maker topped Wall Street’s sales forecast amid ongoing demand for its artificial intelligence (AI) platforms.

The company posted fourth quarter revenue of $608.4 million, up 20% from the year-ago quarter and ahead of the $602.4 million figure analysts had expected. Meanwhile, adjusted earnings for the period came in at 8 cents per share, in-line with the consensus forecast. The results were bolstered by the company’s U.S. commercial division, which grew its customer count by 55% from last year’s corresponding quarter.

Palantir CEO Alex Karp said in a letter to shareholders late Monday that the company’s expansion and growth has never been greater, especially with “unrelenting” demand in the U.S. market for large language AI models. Karp added that the company’s AI technology pilots had increased more than sixfold over the past year. “Our results reflect both the strength of our software and the surging demand that we are seeing across industries and sectors for artificial intelligence platforms,” Karp wrote in the letter.

For the current quarter, the company issued sales guidance of between $612 million and $616 million, with the high end of that range falling just short of the Street expectation pegged at $617 million. However, analysts’ full-year revenue projection of $2.66 billion sits at the midpoint of the company’s 2024 sales range of $2.65 billion to $2.67 billion.

Palantir shares have traded within an ascending channel since early August, with the pattern’s lower trendline roughly aligning with the 200-day moving average. Interestingly, the stock recorded its largest single day of share turnover yesterday since early November, with the price running into selling pressure near the 50-day moving average. If the stock continues to climb after reporting earnings, keep an eye on the channel’s top trendline, currently around $22.80, as an area of potential chart resistance.

Palantir shares were up 18.1% at $19.74 around three hours before Tuesday’s opening bell.

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As of the date this article was written, the author does not own any of the above securities.