Palantir (PLTR) shares are rising after the company reported second quarter earnings that beat estimates on both the top and bottom lines and raised its full-year guidance. Argus Research senior securities analyst Joseph Bonner joins Market Domination Overtime to break down the earnings and the company's overall valuation.

Bonner notes that Palantir's earnings was a "pretty great report" amid a tough day for tech stocks. He explains that the data analytics software company is taking a "differentiated approach" from its competitors as it takes its systems and joins them with other models instead of developing its own large language model, saving them more money in the long run.

"There's kind of a thesis out there that maybe these large language models eventually become commoditized. So you know, maybe it's not the best thing to go at their size investing in these big models," Bonner says on Palantir's AI pivot.

He believes that Palantir's valuation is still attractive as the company is now expanding into the commercial space after focusing on government contracts. He notes that this pivot "could provide a lot of opportunities" both domestically and internationally.

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This post was written by Melanie Riehl