Some folks might say that Palantir Technologies (NYSE:PLTR) is shrouded in secrecy because the company sometimes deals with sensitive government data. Yet, it’s no secret that PLTR stock soared to new heights in January, and enriched traders with good timing.
Lately, however, the Palantir share price has been stuck in a range. This is undoubtedly frustrating for investors who believe in the company, and in the future of the data analytics and security business.
As always, the key to winning the game of investing is patience. Just because PLTR stock is drifting aimlessly now, doesn’t mean that it can’t break out soon.
Besides, as we’ll see, Palantir is growing in more ways than one. Given the company’s outstanding fundamentals, there’s no reason to abandon this high-demand software provider now.
Just to recap, PLTR stock started trading on the New York Stock Exchange on Sept. 30, 2020, via a direct listing.
The reference price had been set at $7.25, but the stock opened at $10 on that first day and closed at $9.50.
As the buzz grew about this somewhat secretive company, the share price ramped up quickly. By late January of 2021, the Palantir share price hit a peak of $45.
After a rally of that magnitude, investors should have expected the stock to take a breather. And that’s exactly what happened, as PLTR stock came down to the low $20’s in March.
Fast-forward half a year, and the share price is still in the $20’s. The buyers attempted to push it above $30 on multiple occasions, but they were rejected every time.
This can be frustrating, but it’s not unusual in the financial markets. Digesting huge gains can be a time-consuming process.
More Deals, More Customers, More Revenues
To keep you motivated, we’ll take a look under the hood and see how Palantir’s business is doing. Perhaps it won’t be long before Wall Street re-prices PLTR stock to the upside.
Judging by Palantir’s second-quarter 2021 results, it’s evident that the company is firing on all cylinders.
For one thing, Palantir’s revenue growth is undeniable. In Q2 of 2021, the company’s revenues increased by 49% year-over-year, to $376 million.
Even better, Palantir’s U.S. commercial revenues grew 90% on a year-over-year basis.
Furthermore, the company added 20 net new customers in Q2 2021, and the company’s total customers increased by 13% quarter-over-quarter.
On top of all that, Palantir demonstrated that it knows how to close a deal.
In fact, the company closed 62 deals of $1 million or more in 2021’s second quarter. Of those, 30 deals were worth $5 million or more, and 21 deals were worth $10 million or more.
With all of those achievements in mind, Palantir’s outlook remains bright as the company expects to generate $385 million in revenues during 2021’s third quarter.
Delivering Critical Data
Who utilizes Palantir’s services? Among the company’s clientele are government entities of the highest order – including none other than the U.S. Army.
Just recently, the company revealed that the U.S. Army’s Program Manager for Intelligence Systems and Analytics selected Palantir for a critically important task.
Specifically, Palantir will deliver the Army’s intelligence data fabric and analytics foundation for the Capability Drop 2 (CD-2) program.
We’re talking about high-level security – and a high dollar figure, as well.
Reportedly, Palantir was selected to progress to the next phase of the Army’s indefinite delivery, indefinite quantity (IDIQ) contract, valued at a whopping $823 million.
CD-2 is actually one of multiple efforts that Palantir is working on with the Program Executive Officer for Intelligence, Electronic Warfare and Sensors to help modernize the Army’s intelligence enterprise.
Other such efforts include the Capability Drop 1 (CD-1) and the Tactical Intelligence Targeting Access Node (TITAN) programs.
The Takeaway
It should only be a matter of time before Wall Street is ready to move PLTR stock higher.
For now, though, the market is testing the investors’ patience and belief in Palantir.
Yet, there’s no shortage of data to demonstrate Palantir’s rapid growth and ability to strike deals with clients at the highest levels.
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