Palantir Technologies Inc. (NYSE:PLTR) shares on Thursday surged more than 11% after announcing its most recent quarterly results. The company reported its fiscal Q2 revenue and earnings, beating analyst expectations. Palantir also issued a better than expected topline guidance for Q3 results.
Palantir’s non-GAAP Q2 earnings per share of $0.04 beat expectations by 13.08%, while GAAP earnings came in line at -$0.07. On the other hand, revenue for the quarter grew 49% from the same period a year ago to $375.64 million, outperforming expectations by $14.54 million.
The company forecasts a Q3 revenue of approximately $385 million, slightly better than the consensus Street expectation of $380.13 million.
Why buy Palantir Technologies shares in Q3 2021?
From a valuation perspective, Palantirl shares trade at a steep valuation of 107.97 in the forward P/E ratio. Therefore, value investors may look for alternatives in the market. However, with analysts expecting PLTR earnings per share to grow at an average annual rate of nearly 50% over the next five years, growth investors may find the stock attractive.
Therefore, although Palantir shares have rallied more than 161% over the last 12 months, it seems the bull-run could continue further based on its growth prospects. However, there could be short-term turbulence, with the stock gaining just 6.18% this year.
Palantir stock price predictions for August 2021
Technically, Palantir Technologies shares appear to have recently spiked after crossing above the 100-day moving average. However, the stock price is yet to hit overbought conditions in the 14-day RSI. Therefore, the current bull run could continue in the coming days before hitting a critical resistance level.
Investors can target extended rebound profits at approximately $27.55 or higher at $30.30. On the other hand, the support levels are $23.13 and $20.71. The PLTR stock trades at $24.91 as of this writing.
The case for buying Palantirl shares in Q3 2021
In summary, although Palantir stock is up more than 161% over the last 12 months, this year continues to be choppy, with shares gaining just over 6%. Therefore, with the company issuing better than expected revenue guidance for Q3 after smashing Q2 expectations, the current rally could continue in the coming days.
The post Should you invest in Palantir shares after solid Q2 results? appeared first on Invezz.
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Motiur Rahman
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