With the share price of American software company Palantir (NYSE: PLTR) trading on the downside in the short term, investors hope that the Q2 2024 results will provide a significant boost.
The company, which has benefited from its engagement with the growing artificial intelligence (AI) sector, is expected to announce revenue of $653 million, reflecting a 22% increase from the year-ago period. Net income is projected to be $94.83 million. These results will be released at the close of markets today, August 5.
Additionally, investors will closely monitor the company’s revenue performance from commercial and government customers, focusing on sustained growth in these segments.
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Although earnings estimates appear positive and could impact the stock, caution is warranted due to the general market trading in the red, influenced by growing fears of a possible recession in the United States.
Analysts predict Palantir stock price
Amid current market conditions, Wall Street analysts have provided insights into how PLTR might trade over the next 12 months. Interestingly, 14 diverse analysts at Tipranks project a significant downside for Palantir stock over the next year, forecasting an average price of $22.42, reflecting a downside of nearly 10% from the current price.
The analysts have set a high target of $35 and foresee the stock potentially hitting a low of $9. Notably, almost half of the analysts—six—recommend selling the stock, while five have issued a buy rating.
Specifically, brokerage firm Monness, Crespi, and Hardt analysts believe that Palantir is trading at an “absurd valuation” due to a “19-month GenAI propaganda cycle.” However, they maintain that the company will likely benefit from the AI trend and capitalize on volatile geopolitics in the long run, anticipating that it will meet Q2 revenue estimates.
Additionally, experts from Citi (NYSE: C) predict that Palantir will likely surpass revenue estimates. According to the bank, momentum in the firm’s commercial segment could offset uncertainty in the government side of the business and drive long-term gains.
PLTR price analysis
As of the close of markets on August 2, PLTR traded at $24, representing a 24-hour loss of over 5%. Over the weekly timeframe, Palantir’s share price has also corrected by over 8%. Despite this, the company has benefited from the AI boom, with the equity surging almost 50% year-to-date.
PLTR was also in the red ahead of the market opening on August 5, dropping almost 20% to trade at $22.
In the meantime, stock trading expert Justin Spittler, in an X post on August 4, observed that Palantir continues to demonstrate resilience as it holds above its rising 10-week simple moving average (SMA).
Recent trading sessions have seen buyers stepping around this critical level, indicating strong support and sustained investor confidence in the stock’s upward momentum. This level has consistently attracted buying interest, with notable support observed around this price point over the past several months.
The stock opened at $27.50, reached a high of $27.80, and closed at its current price amidst a trading volume of 170.4 million. Therefore, the steady performance above the 10-week SMA suggests investors remain optimistic about Palantir’s growth prospects despite broader market volatility.
Overall, the trajectory of PLTR now heavily relies on broader stock market trends amid prevailing recession fears.
Disclaimer: The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.
