Palantir Technologies Inc (NYSE: PLTR) has expanded outside its core market into the public sector with its Artificial Intelligence Platform (AIP); which allows users to easily develop various applications within a business that deploy AI in practical ways.

This set the scene for Weekly Options USA Members to profit by 94% using a PLTR Weekly Options trade!

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Monday, June 17, 2024

by Ian Harvey

UPDATE

Palantir Technologies Inc (NYSE: PLTR) has expanded outside its core market into the public sector with its Artificial Intelligence Platform (AIP); which allows users to easily develop various applications within a business that deploy AI in practical ways. Although the applications are practically endless, some use cases involve automating accounts payable, integrating consumer data with customer service teams, and resolving warranty claims.

Management has described the demand for this product as "unprecedented," which has fired up investors about Palantir's stock.

AIP has been a huge success for Palantir, and it's having the biggest effect on its U.S. commercial business. In Q1, Palantir's U.S. commercial customer count rose 69% year over year and 19% quarter over quarter. Revenue from this segment was up 40% year over year to $150 million.

Argus initiated coverage of Palantir with a Buy rating and $29 price target. Argus is positive on Palantir dramatically improving its profitability and cash flow over the past year, setting its FY24 EPS target at 33c per share and its FY25 target at 40c per share.

The PLTR Weekly Options Potential Profit Explained.....

** OPTION TRADE: Buy PLTR JUL 12 2024 23.000 CALLS - price at last close was $1.78 - adjust accordingly.

Obviously the results will vary from trader to trader depending on entry cost and exit price that was undertaken.

Entered the PLTR Weekly Options (CALL) Trade on Friday, June 07, 2024 for $1.25.

Sold half the PLTR Weekly options contracts on Monday, June 17, 2024 for $2.43; a potential profit of94%.

(This result will vary for members depending on their entry and exit strategies).

Holding the remaining PLTR Weekly options contracts for further profit!

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Why the Palantir Technologies Weekly Options Trade was Originally Executed!

Trade Analysis

Palantir Technologies Inc (NYSE: PLTR) is a leading company in the AI and big data analytics sector. The company develops custom software applications on its platforms - Foundry, Gotham, and AIP - that help organizations analyze their data in real time. Palantir works closely with the U.S. government, its allies, and the private sector, where expansion is happening quickly. The company's AIP, or its Artificial Intelligence Platform, has unlocked a new level of growth and could be the long-term catalyst that makes Palantir one of the world's largest businesses over the coming decades.

Current Situation

Palantir Technologies Inc. is growing and profitable, with a balance sheet of $3.9 billion in cash and zero debt. Analysts believe the company's earnings will grow at an annualized rate of 27% over the next three to five years. The company still has just 262 commercial customers in the U.S. That figure could grow for a long time if it continues to show the value of its AI technology for businesses.

Key Insights from Earnings Call

CEO Alex Karp emphasized that its relationship with the US government continues: The US Department of Defense recently disclosed a five-year $480 million contract with Palantir to work on a project known as Maven to develop a smart system that will provide warfighters and intelligence analysts with faster and more accurate information on the battlefield for tasks such as identifying enemy targets.

Catalysts for the Trade

Palantir has won a new, $178 million U.S. Army contract for project TITAN, a battlefield system using artificial intelligence. The Maven contract brings in about $90 million annually, one analyst estimated. Also, Palantir announced that the Department of Defense Chief Digital and Artificial Intelligence Office (CDAO) awarded a contract that could be worth $480 million over a 5-year period.

Palantir and software giant Oracle (ORCL) joined forces to deliver mission-critical AI solutions to governments and businesses. The partnership combines Oracle's distributed cloud and AI infrastructure with Palantir's leading AI and decision acceleration platforms. Further, Palantir and Oracle aim to help organizations increase efficiency, address sovereignty requirements and help clients outpace adversaries.

Further Catalysts for the Trade

Revenue Concentration and Key Client Relationship

At AIPCon, a special invitation-only event hosted by Palantir Technologies (PLTR), CEO Alex Karp laid out how the company can apply lessons learned in the context of war to drive business and productivity growth. Top-performing money managers scooped up over $366 million worth of shares in Palantir. Palantir also sports eight quarters of rising fund ownership.

Earnings Performance and Market Expectations

Boosted by AI buzz, Palantir delivered first quarter earnings that met views while the revenue topped estimates. Sales rose 21% year over year to $634.3 million. Earnings grew 60% to 8 cents a share. Meanwhile, Wall Street forecasts 33% earnings growth to 33 cents a share for the full year.

Analyst reactions

According to the research reports of 14 Wall Street equities research analysts, the average twelve-month stock price forecast for Palantir Technologies is $20.65, with a high forecast of $35.00 and a low forecast of $7.50. The consensus rating for Palantir Technologies stock is Reduce based on the current 5 sell ratings, 6 hold ratings and 3 buy ratings for PLTR.

Company Overview

Palantir Technologies Inc. is an SaaS company focused on AI and big data analytics. It was founded in 2003 in Denver, Co by well-known investors Peter Thiel and Stephen Cohen among others. The company’s goal is to augment human intelligence with data-gathering and analytic tools that can change the world for the better. As of 2022, Stephen Cohen, co-founder Alexander Karp, and Peter Thiel were president, CEO, and Chairman respectively.

Technical Analysis

• Market capitalization: $52.99 billion.
• PE ratio: 196.18.
• Beta: 2.70.
• 52-week low: $20.87.
• 52-week high: $23.59.
• Fifty-day simple moving average: $21.95.
• Two-hundred-day simple moving average: $20.87.

CAPITALIZING ON PALANTIR TECHNOLOGIES

This trade aims to leverage the potential growth of Palantir Technologies in the burgeoning AI market. The company's upcoming earnings report, strategic collaborations, and strong customer relationships serve as catalysts for this trade.

Therefore…..

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