Palantir (NYSE: PLTR) stock is facing market volatility after announcing its latest quarterly financial results. The popular stock pick amongst 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 within 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 upwards of 45% for the first quarter.
However, fourth-quarter results of 2020 are making an immediate impact on the Palantir stock price. Shares went down in pre-market trading shortly after Palantir released its financial results.
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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 only been public for the last five months.
Palantir’s IPO was a major talking point with 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 to $9.50. But it’s been on a consistent path 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.
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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 multi-year 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.
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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.