Palantir Stock Update: Fourth Quarter Loss but Revenue Beats Projections
Palantir stock is facing market volatility after announcing its latest quarterly financial results. The popular stock pick among investors beat revenue expectations but reported a net loss of $0.08 per share.
Palantir Stock History and Outlook
Palantir is an American software company that specializes in data analytics. And it’s become a massive player in the industry. Overall, its top 20 customers generate an average of $33.2 million each in revenue for the company.
By 2025, Palantir expects to earn $4 billion in revenue. Projections for revenue growth in 2021 are near 30% and upward of 45% for the first quarter.
However, fourth quarter results for 2020 are having an immediate impact on the Palantir stock price. Shares went down in premarket trading shortly after Palantir released its financial results.
So how did Palantir get to this point? Did you know Palantir originally intended to make its initial public offering in 2019? That didn’t pan out. In fact, it’s been public for only the last five months.
Palantir’s IPO was a major talking point that drew a lot of attention. The company officially hit the stock market on September 30, 2020, at $10 a share. It closed the first day down at $9.50. But it’s been on a consistent path upward ever since.
This company has a lot of promise and high expectations going forward. Yet no one is safe from market volatility.
Palantir stock was up to $29 a share within its first two months. Since that point, it’s faced volatility, with highs of $45 before falling back to the $30 range.
Should You Buy Palantir Stock?
Do you want to add Palantir stock to your portfolio? If so, it’s important to learn more about the company and its industry.
Palantir comes with a market cap of about $51 billion. That’s a great start. And most seasoned investors expect the company’s value to steadily rise along with its revenue projections.
But for short-term traders, Palantir stock comes with a lot of risk. That’s clear based on the latest financial results. Therefore, this may be a stock you want to keep a close eye on over the coming months.
The Future of Palantir
Palantir is preparing for a bright future. And this can only benefit investors. The company is signing one deal after another as major companies expand their usage of Palantir’s technology.
Take BP (NYSE: BP) for example. The oil giant is expanding its use of Palantir’s data processing software to cut greenhouse gas emissions. This includes optimizing wind farms and solar power generation. Palantir has also completed a multiyear enterprise agreement with mining corporation Rio Tinto (NYSE: RIO).
The future is promising, and Palantir stock may benefit as a result. Only time will tell, but the company’s major partnerships are a sign of good things to come.
Investing in Tech Stocks
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Nobody wants to miss out on the next big market shaker. And this is why it’s important to stay ahead of the trends.
Some companies are built to last while others fall behind. Keep tracking the Palantir stock price as the company ramps up its partnerships and builds on its already promising revenue projections.
About Corey Mann
Corey Mann is the Content Manager of Investment U. He has more than 10 years of experience as a journalist and content creator. Since 2012, Corey’s work has been featured in major publications such as The Virginian-Pilot, The Washington Post, CNN, MSNBC and more. When Corey isn’t focusing on Investment U, he enjoys traveling with his wife, going to Yankees games and spending time with his family.