Skip to content

We want to clarify that IG International does not have an official Line account at this time. We have not established any official presence on Line messaging platform. Therefore, any accounts claiming to represent IG International on Line are unauthorized and should be considered as fake.
CFDs are complex instruments. 72% of retail client accounts lose money when trading CFDs, with this investment provider. You can lose your money rapidly due to leverage. Please ensure you understand how this product works and whether you can afford to take the high risk of losing money.
CFDs are complex instruments. 72% of retail client accounts lose money when trading CFDs, with this investment provider. You can lose your money rapidly due to leverage. Please ensure you understand how this product works and whether you can afford to take the high risk of losing money.

Palantir share price on hold ahead of Q3 earnings

Palantir’s share price is up close to 7% year-to-date. Can its upcoming results lift sentiments?

Palantir Source: Bloomberg

When does Palantir report earnings?

Palantir is set to release its third quarter (Q3) financial results on 9 November 2021, before market opens.

Palantir earnings – What to expect

With government contracts accounting for 61.8% of Palantir’s overall revenue, market participants are looking out for progress regarding some diversification of its businesses towards commercial contracts. As of quarter two (Q2) 2021, its government segment is still growing at a faster pace than commercial, with a 11.4% sequential growth versus 8.1% for the latter. This continues to highlight Palantir’s dependence on government contracts to underpin its growth for the upcoming result. Any securing of commercial contracts may lift sentiments for share price, looking at previous instances with IBM and Fujitsu.

For growth ahead, the company has recently won a $823 million contract from the United States Army and a $90 million contract with the US Veterans Affairs, although it may not be reflected in these upcoming results. For its Q3 revenue guidance, the company expects revenue of $385 million, translating to a year-on-year growth of 33.0%, in line with its long-term revenue guidance of more than 30% over the next four years.

While revenue has been delivering consistent growth, increased marketing and research & development (R&D) spends are still weighing down on the timeline to achieve profitability. As the company continues to focus on building its brand and product development, losses are expected to remain.

Palantir's revenue, net losses and gross margins Source: Palantir
Palantir's revenue, net losses and gross margins Source: Palantir

Valuation

In terms of valuation, Palantir’s forward price-to-sales stands at 26.5, compared to the technology sector of 6.79. The pricier valuation may come as there is optimism over its future growth ahead, with its projected revenue growth of 33.0% being higher than the industry’s growth of 17.2%.

At the time of writing, the stock has two ‘buy’ recommendations, three ‘holds’ and three ‘sells’. The Bloomberg 12-month consensus target price of $24.83 comes near to its previous closing price of $25.06.

Palantir shares – technical analysis

From its technicals, Palantir’s share price seems to be trading within an ascending triangle pattern, with a series of higher lows since May this year. That said, the flat-lined moving average convergence/divergence (MACD) suggests a largely ranging market and one may have to watch for a break above the $27.00 level to bring about further shift in momentum to the upside. That level has weighed on prices on previous two occasions, where the Fibonacci 50% retracement level lies. Near-term support may remain at the upward trendline, putting the $24.50 level on watch.

Palantir Source: IG Charts
Palantir Source: IG Charts

This information has been prepared by IG, a trading name of IG Markets Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients.

Seize a share opportunity today

Go long or short on thousands of international stocks.

  • Increase your market exposure with leverage
  • Get spreads from just 0.1% on major global shares
  • Trade CFDs straight into order books with direct market access
Learn more

Live prices on most popular markets

  • Forex
  • Shares
  • Indices

You might be interested in…

<h3>How much does trading cost?</h3>
<h3>Find out about IG</h3>
<h3>Plan your trading</h3>

Find out what charges your trades could incur with our transparent fee structure.

Discover why so many clients choose us, and what makes us a world-leading provider of CFDs.

Stay on top of upcoming market-moving events with our customisable economic calendar.