Palantir (NASDAQ: $PLTR) Soars 22% After Earnings Beat

Palantir Technologies Inc. (NASDAQ: PLTR) has stunned the market once again, with its stock surging as much as 22% in extended trading following a blowout Q4 earnings report. The company not only exceeded analyst expectations but also provided an optimistic revenue outlook for 2025, further cementing its position as a dominant player in artificial intelligence and defense technology.

Strong Earnings and AI-Powered Growth
Palantir’s Q4 revenue came in at $828 million, significantly surpassing the estimated $776 million and reflecting a 36% year-over-year (YoY) growth from $608.4 million. The company also reported an adjusted earnings per share (EPS) of 14 cents, outperforming the expected 11 cents. Furthermore, adjusted income from operations stood at **$373 million**, representing an impressive **45% margin**.

These robust financial results were driven by increased demand for Palantir’s AI-powered software, particularly within its U.S. commercial and government sectors.
- U.S. Commercial Revenue: Up 64% YoY to $214 million.
- U.S. Government Revenue: Up 45% YoY to $343 million.

CEO Alex Karp highlighted Palantir’s early entry into the AI landscape, stating that the company’s vision for large language models has transitioned from theoretical to commercial reality. With AI adoption growing rapidly, Palantir’s position in the space continues to strengthen.

The company raised its Q1 2025 revenue forecast to between $858 million and $862 million, significantly above analysts’ estimates of $799 million. Additionally, Palantir now expects full-year revenue between $3.74 billion and $3.76 billion, outpacing the consensus projection of $3.52 billion.

Technical Analysis:
Palantir’s stock closed Monday’s extended session with a notable 22% surge, setting up a potential bullish momentum. As of Tuesday’s premarket trading, PLTR was up 19%, signaling continued investor enthusiasm.

- Relative Strength Index (RSI): 65.49, indicating strong bullish momentum, though approaching overbought levels.

- Support Level: Immediate support lies at $77, aligning with the 38.2% Fibonacci retracement level. A drop to this level could present a buying opportunity.

- Resistance Level: A breakout above $97 could propel the stock toward $120, aligning with Palantir’s upward trajectory and bullish sentiment in AI stocks.

An important factor to note is the formation of an upside gap, which is a bullish signal but could eventually be filled over time. However, given Palantir’s strong fundamentals, the short-term technical outlook remains positive.

Analyst Upgrades: Bullish Targets Ahead
Several analysts have revised their price targets for Palantir following its strong earnings:
- BofA Securities raised its price target from $75 to $90, maintaining a Buy rating.
- DA Davidson increased its target from $47 to $105, while keeping a Neutral stance.
- Wedbush Securities’ Dan Ives compared Palantir to Oracle, predicting it could reach a trillion-dollar market cap in the coming years.

Conclusion:
With a massive earnings beat, strong revenue outlook, and AI-driven expansion, Palantir has reinforced its position as a market leader. Technically, the stock is experiencing a bullish breakout, and analysts remain optimistic about its long-term prospects. However, traders should be mindful of potential short-term pullbacks due to the recent gap-up in price.