Palantir Won't Rise Again Until This Happens
Big-data analytics company Palantir (NYSE: PLTR) reported earnings on Monday, Nov. 7, resulting in an 11.5% drop -- the latest leg down in the stock's 70% decline over the past year. Curiously, the company actually beat revenue expectations. Revenue rose 22% to $478 million, beating expectations by nearly $3 million. However, adjusted (non-GAAP) earnings per share of $0.01 missed expectations by $0.01.
One would think that Palantir, with its top-of-the-line analytics software system used by the military and commercial enterprises, would be performing better. After all, with war between Russia and Ukraine and tensions swirling around China and Taiwan, along with other geopolitical hotspots flaring up after the pandemic, Palantir's big-data software should be in high demand.
The thing is, Palantir's software actually is in high demand, and some underlying metrics point to a positive long-term picture. Yet there appears to be one big hole in its revenue trajectory, as well as a big cost headwind keeping a lid on its bottom line.
Source Fool.com
