In This Article:
Palantir Technologies (PLTR, Financials) will report quarterly results after the market closes Monday, and traders are bracing for a major move. Options pricing implies a swing of more than 12%, which could push the stock to a new all-time high near $139or knock it back to $108.
Palantir has become a standout in 2025, rising more than 60% year to date, even as the S&P 500 has slipped more than 3%. That momentum builds on its 340% surge in 2024, making it the index's best performer last year as well.
Much of that strength comes from surging demand for artificial intelligence tools and a flood of government contracts. More than 40% of Palantir's fourth-quarter revenue came from U.S. federal agencies. While cost-cutting under President Trump and Elon Musk raises some uncertainty, Palantir's focus on defense and immigration tech puts it in step with the administration's priorities.
The company has a pattern of delivering upside surprises. It rallied more than 20% after each of its last two earnings releases, citing strong adoption of its AI platform and revenue growth above 30%.
Still, Wall Street isn't sold. Only one analyst currently rates the stock a buy, citing valuation concerns after its meteoric run. But Palantir's retail following remains loyal. According to Vanda Research, it's the third most popular stock among individual investors, trailing only Nvidia (NVDA, Financials) and Tesla (TSLA, Financials).
Investors will be watching closely to see if the earnings match the hypeand whether the rally has room to continue.
This article first appeared on GuruFocus.