Tag Archives: Palantir Technologies Inc

Business

Palantir (PLTR) earnings Q3 2022

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A person poses in front of a banner featuring the logo of Palantir Technologies (PLTR) at the New York Stock Exchange (NYSE) on the day of their initial public offering (IPO) in Manhattan, New York City, U.S., September 30, 2020.

Andrew Kelly | Reuters

Shares of Palantir fell more than 10% Monday after the company released third-quarter earnings that missed analyst estimates for earnings but beat on revenue.

Here’s how the company did:

  • EPS: $0.01, adjusted, vs. $0.02 expected by analysts, according to Refinitiv.
  • Revenue: $478 million vs. $470 million expected by analysts, according to Refinitiv.

Palantir’s revenue for the quarter increased 22% year over year, and its U.S. commercial revenue grew 53%. The software company, which is known for its work with the government, said its US commercial customer count increased 124% year over year, growing from 59 customers to 132.

In a letter to shareholders, Palantir CEO Alex Karp said the company is in the “early stages of a significant transformation.”

Karp said Palantir anticipates regional markets within the U.S., such as the Midwest, Southeast, Texas and New England, could develop into billion-dollar businesses. However, Karp said that countries in continental Europe have been less willing to introduce “software systems that challenge existing habits.”

“We have found that large institutions in the United States have been far more willing to investigate the most significant sources of systemic dysfunction within their organizations, which in the current moment often relate to the ability or rather inability of an institution to metabolize its own data,” he said.

Palantir said it expects to report between $503 million and $505 million in revenue during the fourth quarter, on a par with analyst estimates of $503 million according to StreetAccount.

“We are building the digital infrastructure that makes continued industrial progress in late capitalism possible,” Karp said in the letter. “The metaverse and other idiosyncratic pursuits of the technocratic elite may be luxury goods. But foundational data platforms are not.­­­”

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Dow futures lower as investors await midterm elections and inflation report

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Traders work on the floor of the New York Stock Exchange (NYSE), September 6, 2022.

Brendan McDermid | Reuters

U.S. stock futures slightly fell on Sunday as investors looked ahead to a week packed with the Congressional midterm elections, as well as the latest consumer inflation report.

Dow Jones Industrial Average futures fell by 31 points, or 0.1%. S&P 500 and Nasdaq 100 futures was 0.15% and 0.25% lower, respectively.

Apple shares may fall after the tech company said iPhone production has been temporarily reduced because of Covid-19 restrictions in China.

Those moves follow Friday’s rally, when the Dow Jones Industrial Average gained nearly 402 points, or 1.3%. The S&P 500 rose 1.36%, and the Nasdaq Composite was 1.28% higher. Still, the major averages closed the week with losses. The Dow ended a four-week win streak on rate hiking fears.

Tuesday’s midterm election will determine which party will control Congress, and impact the direction of future spending. Democrats currently control the House, and have a majority in the Senate. A Republican sweep could signal greater support of oil and gas companies.

On the economic front, investors are anticipating Thursday’s CPI report will give further insight into the Federal Reserve’s efforts to squash inflation. A hot inflation report could signal to investors that a pivot from higher interest rates, for longer, could be further away than expected.

“[In] order for the equity and bond markets to match the post-peak inflation performance noted in the table, inflation needs to keep coming down — and at a faster pace than we’ve yet seen. Until the Fed signals the ‘pivot’ is near, things could remain challenging,” Baird’s Ross Mayfield wrote in a recent note.

Elsewhere, several companies are expected to report Monday including Palantir Technologies, Activision Blizzard, Lyft and Take-Two Interactive. Corporate earnings season is winding down with a majority of companies in the S&P 500 having reported results.

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DoorDash, Hasbro, Palantir, Walmart and more

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The board game Monopoly by toymaker Hasbro at a toy store in New York City.

Getty Images

Check out the companies making headlines in midday trading Thursday.

DoorDash — Shares of DoorDash jumped more than 11% after the food delivery company’s quarterly revenue turned out better than expected. DoorDash reported $1.3 billion in revenue last quarter, beating a Refinitiv estimate of $1.28 billion. The company also posted strong order numbers and added new users, suggesting that demand for food delivery services remains high.

Palantir Technologies — Shares of Palantir dropped 10% after the company’s earnings fell short of forecasts for the fourth quarter, though its revenue beat estimates. Its reported net loss was $156.19 million, wider than the $148.34 million loss seen in the year-earlier period.

Hasbro — The toymaker saw shares rise more than 3% after activist investor Alta Fox Capital Management nominated five directors to the company’s board. Alta is pushing for Hasbro to spin off its Wizards of the Coast unit and its digital games unit, which include franchise brands like Dungeons and Dragons and Magic: The Gathering. Alta owns a 2.5% stake in Hasbro worth around $325 million.

Fastly — The cloud computing company’s shares plunged 30% on disappointing full year guidance. Fastly reported a fourth quarter loss, though it was narrower than analysts had expected, and revenue beat consensus estimates.

Nvidia — Shares of the chipmaker fell 6% despite the company reporting strong quarterly results. Nvidia noted that its automotive business, which represents a growth market for its chips, had revenue drop 14% to $125 million. It also came under pressure on concerns about its exposure to the cryptocurrency market.

Cheesecake Factory — The restaurant chain saw its shares rise 4% despite it reporting earnings that missed analysts’ expectations along with increased input costs that negated a beat in revenue. The company is planning a price increase in new menus that could lift prices later this year.

Walmart — The retail giant’s shares rose more than 2% after Walmart topped earnings expectations and said it’s on track to hit long-term financial targets, calling for adjusted earnings per share growth in the mid single-digits.

Tripadvisor — The travel site operator fell 2.7% following an unexpected quarterly loss and a revenue miss. Tripadvisor said it expects the travel market to improve significantly in 2022 following what it called “unexpected periods of virus resurgence” in 2021.

Cisco Systems — The software company added about 4% after it reported a beat on quarterly revenue and earnings and issued an upbeat full-year forecast, citing strong demand from cloud computing companies. Cisco earnings of 84 cents per share beat estimates by 3 cents. Revenue came in at $12.72 billion, versus estimates of $12.65 billion.

Equinix — Digital infrastructure company Equinix gained more than 4% after TD Securities upgraded the stock to buy from hold, citing its recent pullback. The upgrade came a day after the company reported fourth quarter adjusted EBITDA that beat estimates, as well as a slight revenue beat.

— CNBC’s Yun Li contributed reporting.

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Business

I prefer Pfizer’s stock over Novavax

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Seres Therapeutics: “You’re a younger person and you’re new and I think you can buy it. For an older person, it’s too speculative because the company is not making any money. I like your call, though.”

ViacomCBS: “It’s OK. I think that whole business is under assault. You can mention any one of these. I think it’s just OK. I mean, it’s well run, but it’s just OK.”

Novavax: “They came on like gangbusters. We all thought they were going to be equal. I like Pfizer. Pfizer’s got the pill coming up, too. That’s the inexpensive way. I feel safe with Pfizer.”

ODP Corporation: “No, I can buy everything I want on Amazon. I do not need that company. That is an Amazon roadkill.”

GrowGeneration: “Now, Grow we had on in the teens and then when it got to the $40s and $50s, we said, ‘We have had enough. We’ve made too much money, let’s not be greedy.’ Bulls make money, bears make money, hogs get slaughtered, and we said sell and we have never looked back.”

Canopy Growth: “At this point, $9, I guess I would [be a buyer]. My problem here is that this did not have a good quarter. It’s not doing that well. … I don’t like the cannabis business. I just don’t. I think it was an overhyped business, not unlike what we’re seeing right now in the gambling business, which is just brutal.”

Palantir: “Cult stock, cult stock, cult stock. The cult stocks aren’t working, OK? … We fooled around with it, we traded it, but no. It’s a cult stock right now. It’s not working.”

ContextLogic: “We actually think this company is a decent company, and they’re throwing it away. I mean look, you buy it at $3, can it go to zero? I guess so, but it’s a good [speculative play].”

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Palantir (PLTR) Q3 2021 earnings

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A pedestrian passes a banner displaying Palantir Technologies signage during the company’s initial public offering (IPO) in front of the New York Stock Exchange (NYSE), Sept. 30, 2020.

Michael Nagle | Bloomberg | Getty Images

Palantir, which makes software and analytics tools for the government and large corporations, reported third-quarter earnings on Tuesday that beat analyst expectations on revenue and met earnings estimates.

Shares rose as high as 5% in premarket trading Tuesday morning. The stock is currently down about 3%.

Here’s how the company did compared with analyst expectations:

  • EPS: 4 cents adjusted vs. 4 cents, according to Refinitiv
  • Revenue: $392 million vs. $385 million estimated, according to Refinitiv

Palantir’s revenue grew 36% year-over-year to $392 million. That’s a slowdown from two consecutive quarters of 49% year-over-year growth, but the company also provided a strong outlook for the current quarter. Palantir said it expects revenue to come in at $418 million, beating current Refinitiv estimates of $402 million.

Revenue for the full year is expected to come in about $1.53 billion or 40% year-over-year growth, the company said. Palantir also reaffirmed that it expects annual revenue growth of 30% or more through 2025.

Palantir, which supplies data analytics software to government agencies was founded by tech investors Peter Thiel, Joe Lonsdale, CEO Alex Karp, and others in 2003. It went public through a direct listing on the New York Stock Exchange last September and had a market cap of more than $44 billion as of market close Nov. 8.

Some of its prominent clients have included U.S. government agencies like the Department of Defense. In recent years, Palantir has sought to diversify its business and saw a rise in demand for its technology during the pandemic, as countries sought to parse through health data. In July, the Department of Health and Human Services renewed an agreement with Palantir to use its software to track vaccine distribution.

During the quarter, U.S. commercial revenue grew 103% year-over-year and its commercial customer count was up 46% from the previous quarter, Palantir said. The company did not break out government revenue.

Palantir added 34 net new customers in the third quarter and closed 33 deals worth $5 million or more and 18 deals valued at $10 million or more.

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Dow futures are little changed after a record close on Friday

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Traders work on the floor of the New York Stock Exchange (NYSE) on October 25, 2021 in New York City.

Spencer Platt | Getty Images

Stock futures idled in overnight trading after the major U.S. market indexes reached record highs on Friday following a better-than-expected October jobs report.

Futures on the Dow Jones Industrial Average were nearly flat. S&P 500 futures were little changed and Nasdaq 100 futures dipped 0.3%.

The moves in futures trading came after the U.S. House of Representatives late Friday passed a more than $1 trillion infrastructure bill, sending the legislation to President Joe Biden for his signature. The package passed by the Senate in August would provide new funding for transportation, utilities and broadband, among other infrastructure projects.

The three major U.S. stock averages each closed at record highs Friday to cap off a winning week. The Dow rose 203.72 points, or nearly 0.6%, in its sixth-straight position day. The S&P 500 gained 0.4% for its seventh winning session in a row. The Nasdaq Composite added 0.2% to post its tenth consecutive positive session.

The rally came after the October jobs report came in better than economists had expected. U.S. payrolls added 531,000 jobs last month, according to the Labor Department. Friday’s report also revised up September and August payroll numbers.

“The economy is certainly picking up some momentum,” JPMorgan’s David Lebovitz said Friday on CNBC’s “Squawk on the Street.” “We are expecting economic growth to accelerate here into the end of 2021 and the beginning of 2022.”

The Federal Reserve earlier last week announced a plan to begin tapering its pandemic-era economic aid by the end of November, putting the central bank on track to end its asset purchase program by the middle of next year.

Investors await fresh inflation readings in the week ahead. The producer price index and consumer price index are slated for release on Tuesday and Wednesday, respectively. Economists expect both reports to remain hot for October.

Companies including PayPal, Palantir and Disney report quarterly earnings this week.

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Palantir bought $50 million in gold bars in August as cash accumulates

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Alexander Karp, CEO of Palantir Technologies Inc.

Getty Images

While some companies such as Tesla are diversifying into bitcoin, data analytics software company Palantir is betting on gold. Palantir bought $50 million in gold bars in August, the company disclosed in its latest earnings statement.

The move reflects a growing company stashing cash in an unconventional asset in response to economic uncertainty spurred by the coronavirus pandemic and governments’ response to it.

The price of an ounce of gold crossed the $2,000 mark for the first time last year as the pandemic worsened and U.S. government stimulus efforts continued. This year investors have more loudly voiced concerns about inflation, and gold is sometimes viewed as a hedge against inflation, although prices are down 7% for the year. Some investors have thought cryptocurrencies might also serve that role.

“During August 2021, the Company purchased $50.7 million in 100-ounce gold bars,” Palantir said in the Aug. 12 earnings statement for its fiscal second quarter. “Such purchase will initially be kept in a secure third-party facility located in the northeastern United States and the Company is able to take physical possession of the gold bars stored at the facility at any time with reasonable notice.”

Palantir did not respond to a request for comment on the investment.

After completing a direct listing and debuting on the New York Stock Exchange in September, Palantir is now debt-free, the company’s finance chief, Dave Glazer, told analysts on a conference call last week. Revenue has accelerated for two consecutive quarters, with 20 new customers joining in the fiscal second quarter.

Palantir is investing to grow, bringing on more than 100 salespeople in the past two quarters, and plans call for hiring to continue at a fast pace, Glazer said.

The company remains unprofitable, as it was as a privately held company. Meanwhile, its supply of cash has been increasing, in part thanks to stock issuance and proceeds from the exercise of stock options.

That has given Palantir an opportunity to invest in its own customers, including early stage companies, which are very different from existing government customers such as the U.S. Department of Health and Human Services. Among the investments are companies that have gone public through mergers with special-purpose acquisition companies, such as AdTheorent, Fast Radius, FinAccel and Tritium, according to the earnings statement.

It’s possible that following the gold investment, Palantir could expand into cryptocurrencies. In May, after Glazer was asked on an analyst call if the company could have bitcoin or other cryptocurrencies on its balance sheet, he said, “The short answer is, yes, we’re thinking about it, and we’ve even discussed internally.”

WATCH: More downside is likely for gold, says UBS Global

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Business

Peloton, Palantir, Tellurian and more stocks

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Foley Trasimene Acquisition Corp.: “There are so many of these things that it’s very difficult to keep track of, and I don’t want you in them. We’re done with that era. I think we’ve got to let these stocks come down … It’s too darn hard for investors.”

Peloton: “It’s had a big run and I’m moving on.”

Tellurian: “It’s a terrific $2 spec. I call it a call option. It’s almost a lottery ticket, but I don’t like betting against [co-founder] Charif Souki.”

Palantir: “I don’t think this is the time to double down … You don’t double down until something has come down significantly enough to change your [cost] basis.”

G1 Therapeutics: “These are stocks that I never say no to anyone, provided they recognize that it’s the speculative stock in their portfolio. It is not like owning a Merck.”

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Cathie Wood’s Ark Innovation fund is set for a big rebound Tuesday as Tesla, other tech darlings pop

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Cathie Wood, CEO and founder of ARK Invest.

CNBC

Widely followed investor Cathie Wood is about to recoup some of her recent sharp losses as tech stocks rebounded Tuesday after a brutal correction triggered by surging bond yields.

Wood’s flagship active exchange-traded fund Ark Innovation ETF (ARKK) climbed 4.8% in premarket trading on Tuesday. Tesla, the fund’s biggest holding, is up 5.2% in early trading. Among other holdings, Zoom Video is up 4.2%, while Palantir gained 3.7%.

Another big holding Invitae is up 10% in premarket trading Tuesday. She told CNBC on Monday that the company, which operates in the molecular diagnostics space, is one of the firm’s most under-appreciated holdings.

The rebound in ‘ARKK’ came amid a 2% jump in Nasdaq 100 futures as bond yields stabilized. The Nasdaq Composite dropped 2.4% on Monday, falling into correction territory, or more than 10% from its recent high.

Wood, who focuses on innovative technology, has seen stocks fitting her strategy get hammered lately amid a big market rotation out of high-flying tech and into cyclical value stocks in the face of higher rates. The fund lost 5.8% on Monday alone, pushing its 2021 losses to 11%.

High-growth names are hit particularly hard as rising rates make their future profits less valuable today, making the stocks’ lofty valuations less justifiable. Many of her big stakes experienced steep losses over the past month: Tesla has shed 33%, Zoom Video has lost 27%, Palantir is down 41%.

The Ark Investment Management founder and CEO said Monday she is not concerned about the recent drop in her funds and she believes over time her disruptive strategy will pay off.

“Right now the market is broadening out and we think in an underlying sense the bull market is strengthening and that will play to our benefit over the longer term,” said Wood said on CNBC’s “Closing Bell” on Monday.

“We are getting great opportunities” in the sell-off to buy the pure play names in the funds, added Wood.

Wood gained a wide following on Wall Street after a banner 2020 that saw her flagship fund return nearly 150% as the pandemic accelerated innovation trends. The fund’s asset under management has ballooned to more than $17 billion.

— CNBC’s Maggie Fitzgerald contributed reporting.

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Dow futures up 180 points as stocks look to add to record levels

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Pedestrians walk in snow past the Wall Street subway station near the New York Stock Exchange.

Michael Nagle | Bloomberg | Getty Images

Futures contracts tied to the major U.S. stock indexes rose in extended trading Monday evening after finishing strong last week.

Dow futures rose 180 points, suggested an implied open of about the same magnitude, while S&P 500 contracts added 19.25 points, or 0.5%. Nasdaq 100 futures gained 67.5 points, or 0.5%.

The U.S. stock market was closed on Monday for Presidents Day.

The major averages finished last week with decent gains even as February’s rally appeared to cool off somewhat. The blue-chip Dow Jones Industrial Average posted two little changed days, while the S&P 500 swung within 0.2% for three days in a row.

Still, the S&P 500 finished the week with a gain of 1.2%, while the Dow added 1%. The tech-heavy Nasdaq Composite rose 1.7%. All three closed at record levels on Friday.

Stock strategists say the rollout of the Covid-19 vaccine, economic reopening and expectations for more fiscal stimulus are key to the market’s buoyant February thus far.

“Covid is far from defeated, but the path toward economic normalization is clearer as more vaccines that reduce hospitalizations and eliminate fatalities are approved,” Dennis DeBusschere, strategist at Evercore ISI, said in an email.

“Treasury Secretary [Janet] Yellen’s forceful arguments for additional stimulus followed by Fed Chair [Jerome] Powell describing maximum employment as ‘our national goal’ helped lift bond yields, inflation expectations, and oil prices last week,” he added.

The Dow has gained 4.9% in February, while the S&P 500 and the Nasdaq have rallied 5.9% and 7.8%, respectively. The S&P 500 has raked in ten record closes in 2021.

Pedestrians walk past a snow covered bull sculpture during a late season nor’easter in New York.

Lucas Jackson | Reuters

Still, DeBusschere warned that rising interest rates and an uncertain policy outlook could keep trading from growing too frothy in the near term and recommended investors stick to cyclical stocks that could see the most upside as the U.S. economy recovers.

Those so-called cyclical sectors, those most sensitive to an economic rebound, have led the rally in February. Energy is up more than 13% month to date, with financials and materials also among the leading sectors.

Freezing weather in regions across the U.S. sparked another rally in energy futures on Monday and put West Texas Intermediate crude contracts above $60 a barrel for the first time since the early days of the coronavirus pandemic.

In corporate news, CVS Health, Occidental Petroleum, Palantir and others will report earnings on Tuesday.

Executives from Robinhood, Melvin Capital and Citadel are scheduled to testify before the House Financial Services Committee on Thursday. Lawmakers are likely to grill the group on the wild trading in GameStop and other heavily shorted equities.

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