Palantir Technologies Inc. NASDAQ: PLTR will report on profit after the market closing on May 5. This will be one of the closest income reports for both bulls and bears. And each group of investors will look for reasons to support their business.
If you are optimistic on Palantir, you will look for a company to continue your scheme for overcoming expectations for income and income, and also continue to provide aggressive guidelines. The steamer seemed to announce new transactions weekly, if not several times a week, in the last quarter.
And these contracts concluded both government and commercial customers. The distribution of the company’s income between its government and commercial divisions continues to approach point 50/50.
However, if you bearYou expect the company to cope with huge expectations. In addition, like many software development companies, Palantir seems to be protected from tariffs, but investors sold in the form of news that state expenses would be reduced. And for shares at a price for perfection, and then some, the reserve will not take much time to fall by 20% or more from its current level.
There are reasons to believe that both sides can be correct. Here are two things on which investors should focus before the income report.
Palantir bears is a broken record, but it may make sense
Critics of the Palantir say that the company’s shares are overestimated. And for any objective measure, this is right. Even among the technological shares that investors usually pay for the purchase, PLTR shares are expensive.
In fact, using the model of discount on cash flows, the fair price of the PLTR shares can be about $ 48 per share. This is a mass discount on the price of shares on May 1, which approaches a record high maximum.
If the company is not still exploded by expectations to call earnings, this is not only possible, but probably the action can strike. The shares fell by more than 20% at the beginning of 2025 during rumors that the efforts of the Department of State Efficiency (DOGE) to reduce wasteful state expenses will mean canceled contracts for a steamer.
But the comments of the Minister of Defense Pit Hegset, as well as the recent transaction of the company to provide the organization of the North Atlantic Agreement (NATO) with its intellectual system Maven based on AI, put these problems for rest.
Nevertheless, this is the nature of such a reserve as a steamer. Investors have already seen how shares fell by more than 20% this year, emphasizing the fact that the company is subjected to macroeconomic events that are outside its control.
History can be repeated, or it cannot. In any case, for investors who are not in PLTR shares, it can be a bad entrance point.
Another analyst has increased the target price for PLTR shares
On the other hand, simply because Promotions of PLTR are expensive This does not mean that it cannot become higher. From the moment of falling at the beginning of this year, the steamer almost made it back and back and pushed 50-day simple sliding average (SMA).
As a counterpoint about problems with an assessment, investors often look at what analysts talk about the action. In the case of a steamer, Feelings continue to be optimisticThe field actually, the key reason why the PLTR shares continued to rise last year is that Analysts rise Their price goals.
Many investors know that Dan Ivs from Wedbush was one of the leading Palantir Bulls with a target price of $ 125. This week, Chris Versace from Thestreet Pro joined. Versace raised his target to 105 dollars, citing expectations more defense costsField
Remember that retail investors have bought Palantir stocks since they became public through a direct listing in 2020. The growth of shares over the past 12 months, in particular, the last six months is due Institutional investorsThe field is investors who have a bandwidth for moving stocks as Palantir moves.
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