A recent study by a major Paris-based IT company not only found that the big early winners of the artificial intelligence (AI) boom are this gold rush’s “shovel sellers” – the infrastructure providers – but also that the industry will start growing in earnest in 2024.
With this in mind, it isn’t hard to see why the big data analytics and software company Palantir Technologies (NYSE: PLTR) – which jumped on the AI wave early – rose as much as 167% throughout 2023.
The new year, however, brought a change of pace, and the firm has mostly been stagnating – albeit with significant volatility. Monday, February 5, however, might make or break the trend as Palantir is scheduled to publish its pivotal earnings report for the fourth quarter of 2023.
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Analyst expectations for Q4 Palantir report
Given the huge impact the AI boom has already had, it perhaps isn’t surprising that experts have high hopes for Palantir’s Q4 report. Generally, they expect the company to report $602.88 million in revenue – 18.5% more than in the fourth quarter of the previous year.
The firm’s earnings per share (EPS) are also generally expected to have risen significantly from $0.04 to $0.08. By and large, this growth is believed to have come primarily from Palantir’s Artificial Intelligence Platform (AIP), as well as from its efforts to expand its healthcare and defense business.
Judging by Palantir’s most recent performance on the stock market, investors appear highly optimistic with regard to the upcoming report. After struggling throughout January 2024, the last trading day – Friday, February 2 – brought a 4.23% rise to the stock and saw it close at $17.02.
Additionally, extended hours trading leading up to Monday’s open saw the firm surge an additional 3.11% by the time of publication.
Experts bearish on long-term PLTR prospects
Despite the high hopes in the immediate lead-up to the Q4 earnings report, analysts are, in fact, not particularly optimistic when it comes to Palantir’s performance in the upcoming 12 months.
Looking at the ratings of 8 experts analyzed by TipRanks, Palantir is considered a moderate sell. Generally, a significant majority – 5 – rate is a “sell” while only 2 as a “buy.” The final of the 8 analysts is neutral on the stock.
This overall stance is also reflected in the average 12-month price target, which would see Palantir drop 28.32% to $12.20. Furthermore, the low estimate would see it fall to $5 – a new all-time low. Still, some remain bullish and consider it likely the stock will rise another 23.38% this year to $21.
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