To The Moon

$Palantir Technologies Inc.(PLTR)$ stock have been trading up to 140% since Early May. Investors optimism around the company’s artificial intelligence (AI) efforts have fuel the upside.

Palantir's AI initiatives prompted Wedbush analyst to initiate a “Outperform” ratings. Market will be looking for more updates on Palantir's AI business when it announces its second-quarter results after 07 Aug (Monday) after hours.

In this article, I will be looking at Palantir earnings both from fundamental data as well as from technical analysis indicators.

I would be looking to see if Palantir’s AI business has continued to increase its profitability with the recent multiple contracts win.

Palantir Technologies (PLTR) Earnings Data

The company is expected to report earnings of 5 cents per share vs a loss of 1 cent per share same period last year.

Revenue is forecast to arrive at $532.7 million, up 12.6% year-over-year (YoY).

I would expect the EPS to beat forecast by at least 0.02.

Palantir Technologies (PLTR) Earnings History

Palantir has report profitability for the last 2 quarters and I believe it should get better with more contracts win.

Something we might need to be aware is the cost of maintaining their technology, for a typical data analytics company, the cost could be higher than what it brings in.

I would be more interested to see how Palantir would be sharing on their future plan and what other new product and services would they be rolling out to increase their revenue stream.

Palantir Technologies (PLTR) Year-To-Date Earnings

Palantir has returned a more than 100% growth due to the optimism by investors and their profitability over the last 2 quarters.

They should still have a runway to increase their revenue by capturing on the A.I. revolution where data is a major part.

Data analytics would be something that companies embarking on the A.I. need to have, in order for their data to tell them a story.

With the story, that is where they would be able to come up with a sound A.I. strategy.

Palantir Technologies (PLTR) Financial Overview

Palantir has shown very good improvement in revenue, gross profits and cash flow. This should continue as there have been many new deals.

Something I would be looking out for is how the cash flow would be used on investing in new technologies.

As an innovative data analytics company, I think Palantir would keep improving their product and services as the A.I. landscape changes for the better.

Palantir Technologies (PLTR) Hedge Funds Holdings

Palantir hedge funds investors have good confidence in this company as they have increase 1.1M shares in the last quarter.

I believe this trend should be continuing given that Palantir products have been in good demand.

Palantir Technologies (PLTR) Option Chain

Looking at how Palantir is performing at the option front, it look like there will be a pretty decent move of 15.49% for the expected earnings move.

Looking at how Palantir have been doing recently, they should be able to beat the EPS estimate.

Technical Analysis – Simple Moving Averages (SMA)

Based on SMA, Palantir have been in a bull trend since May 23 (around 90 trading days ago), it is currently trending above the SMA50.

But do note that recently there have been some profit taking where cause the price to show a small dip.

I am expecting the buying activities to come back on 07 Aug 23 before its earnings report after hours.

Technical Analysis – Relative Strength Index (RSI)

RSI momentum is good as Palantir has come back from overbought region. This could be an indication that the selling might be over (due to profit taking).

I am expecting Palantir to move towards near the oversold as buying activities should be surging prior to its earnings report on 07 Aug 2023.

Technical Analysis – Average Directional Index (ADX)

ADX is between 20 and 40 which indicate a developing trend, this would mean Palantir still have room for upside.

+DI is above -DI by a good margin which suggest this developing trend is strong and moving bullish upwards.

Technical Analysis – Parabolic SAR (SAR)

Palantir went through a bullish reversal near 3rd week of July and have been moving bullish upwards.

The recent price dip might be due to profit taking, I will be monitoring the price action today (07 Aug 23) to see if investors are back buying and loading Palantir.

This bullish trend should continue for a while as there is no sign of potential bearish reversal.

Summary

From what I have observed, Palantir is still in a bull trend despite the recent price dip (could be due to profit taking).

I believe the buying trend from investors should be coming back on 07 Aug 23 before its earnings report after hours.

The hedge funds holdings increase mean that there is confidence that Palantir still have potential a longer and better profitable runway.

Appreciate if you could share your thoughts in the comment section whether you think Palantir would see more buying before its earnings and price would surge higher if the profit is better than last quarter?

@TigerStars @Daily_Discussion @TigerWire appreciate if you could feature this article so that fellow tiger would benefit from my investing and trading thoughts.

Disclaimer: The analysis and result presented does not recommend or suggest any investing in the said stock. This is purely for Analysis.