Major AI stocks remained low in morning trading following Palantir’s Q2 results; Buzzfeed and BigBear.ai Holdings fell over 5%.
Palantir reported second-quarter earnings and revenue in line with the consensus estimates. On a GAAP basis, the company reported profitability for a third straight quarter.
The company also raised the mid-point of full-year revenue guidance, calling for top-line excess of $2.212 billion, compared to the previous outlook of $2.185 billion to $2.235 billion. It also raised the operating income guidance from $506 million-$556 million to $576 million. The company also issued above-consensus third-quarter guidance.
Following the earnings report, Wedbush analyst Daniel Ives maintained an Outperform rating and a $25 price target. DA Davidson nearly doubled its price target from $8.5 to $15.
The negative reaction toward the stock may be partly attributable to the broader market weakness, as evident in the slide of the stock futures.
The failure of the company to outperform in the second quarter and the slowdown in the year-over-year growth of the government segment, which fetched roughly 57% of the total revenue, from 20% in the first quarter to 10% in the second quarter could also be weighing down on sentiment.
