Stock Watch

Palantir's share price slips post Q4 numbers

Palantir share price: the Palantir logo on a mobile screen

Palantir Technologies’ share price was higher in pre-market trading, but the stock is now in the red following the release of its fourth quarter results.

The loss per share in the final quarter was $0.08c, while equity analysts were anticipating EPS of $0.02c. Fourth quarter revenue jumped by 40% to $322m, exceeding the $300.7m forecast. Over the three-month period, the company signed 21 new contracts worth at least $5m. Palantir predicts that first-quarter sales will rise by 45%, and guidance stands at $331-$333m, topping the $308.3m projected by equity analysts.

Palantir share price dips despite big contracts

Palantir Technologies specialises in developing software and data analytics tools. Data is big business; tech giants like Facebook and Google are known to have colossal amounts of data on their users, which makes them very popular with advertisers. Data analysis has become very important in the world of politics too. 

In recent months, Palantir signed contracts with IBM, BP, the US army, the NHS and Rio Tinto, underlining the growing hype around the industry.

Volatility follows first public numbers

The Palantir Technologies share price saw a lot of volatility in the wake of its third quarter numbers announcement in November – it was the first earnings update since the company went public. Revenue was $289.4m, topping the $279.4m consensus estimate. In that three-month period, commercial and government agencies revenue increased by 35% and 68% respectively. Fees from government bodies now account for 56% of total revenue. The operating loss was $847.8m but that was due to an $847m stock-based compensation charge. Palantir nudged up its full-year revenue forecast.

In the past couple of months, Citigroup and Jefferies upped their price target for the Palantir share price. In fact, Jefferies lifted it twice; in January, the bank raised its price target from $18 to $30, and then it was increased from $30 to $40.

The Palantir Technologies share price traded in a relatively small range between September - when it listed on the stock market - and early November, since then it has been in a strong uptrend. The stock hit a record high late last month. While it holds above the $20.00 area, the bullish trend is likely to continue, a break above the all-time high, should put $50.00 on the radar. A move below $20.00, should pave the way for further losses.      


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