00:00So Palantir, here's what we got.
00:01Now, a couple of things are noteworthy here.
00:04Obviously, Palantir strength, which we've been covering since, what, the 20s, right?
00:09And we had a couple of troll chatters come in here saying, this is a short, this is a short, this is a short.
00:14You guys have to short this.
00:15Yeah, that was 150 points ago.
00:17Thankfully, we didn't listen to that, and we're still here trying to trade.
00:20The other thing that we should notice is that, boy, oh, boy, these trend lines that we have been drawing on things, they have been spectacular.
00:30In terms of giving us ideas of where this price should go, where support is, where resistance is, the whole nine yards.
00:36It has been phenomenal, and it continues to be phenomenal.
00:40The trend line that we had starting from the Liberation Day low and actually had this kind of drawn here through the June low,
00:47this is now an upside trend line, and these earnings here today busting right through that.
00:53We are actually gapping above that trend line.
00:55This now makes this a key level here.
00:57I would say that 168 to 170 is absolutely going to be a potential area of support here for Palantir.
01:04If we stay above that, there's no stopping the stock from being able to ride that trend line higher.
01:10For all of you that draw fibs on things, I'd be curious to know what type of upside targets do you have from your fib drawings here?
01:18Is there anything that we should pay attention to with all of this?
01:23We shall see here, Palantir.
01:26Now, let's actually dive into some of the numbers here.
01:29Palantir reported financial results for the second quarter after the market closed yesterday.
01:33Palantir reported second quarter earnings of $1 billion.
01:37So Palantir putting up its first billion-dollar quarter, billion-dollar quarter, beating analyst estimates of $939.71 million.
01:46The company's second quarter adjusted earnings of $0.16 per share beat the analyst estimates of $0.14 per share.
01:54Palantir has now met or exceeded analyst estimates on the top and bottom lines in eight consecutive quarters.
02:00I can actually show you how to find that in Benzinga Pro.
02:03Really, really easy to do.
02:05And this company is just absolutely killing it.
02:08They continue to hit on all cylinders here.
02:10Total revenue was up 48% year-over-year, and U.S. revenue grew 68% year-over-year.
02:17U.S. commercial revenue grew 93% year-over-year, and U.S. government revenue climbed by 53% year-over-year.
02:25So just all of those metrics, double-digit gains, almost triple-digit gains in some cases.
02:30Palantir's customer count grew 43% year-over-year and 10% on a quarter-over-quarter basis.
02:37Just no chill in this.
02:40The company said it closed 157 deals worth over $1 million in the quarter, 66 deals worth at least $5 million,
02:50and 42 deals worth at least $10 million.
02:53We're not talking about little numbers here.
02:55These are big-time, big-boy numbers.
02:59Palantir generated $539 million in cash from operations and $569 million in adjusted free cash flow in the quarter.
03:07Palantir ended the quarter with approximately $6 billion cash equivalents and short-term U.S. Treasury securities.
03:15Quote, this was a phenomenal quarter.
03:17We continue to see astonishing impact of AI leverage.
03:21Our rule of 40 score was 94%, once again, obliterating the metric.
03:27Now, this came from Alex Karp.
03:29He's no stranger to talking very positively about the company.
03:35He's often attacked short sellers.
03:37For those of you that are unaware, the rule of 40 is a financial metric that is used in the SaaS industry,
03:43stating that a company's combined revenue growth and profit margin should equal or exceed 40%.
03:50This rule helps assess whether a software-as-a-service company is balancing growth with profitability effectively.
03:57So their growth, their revenue growth rate and profit margin should equal 40%.
04:02Palantir's was 94%.
04:03Just an absolute monster, monster print here, and Palantir is reacting to that.
04:09Palantir expects third-quarter revenue to be in the range of $1.083 billion.
04:14They're anticipating and guiding for another billion-dollar quarter here, and that is above the estimate.
04:21Palantir also raised full-year guidance.
04:23Palantir now expects full-year 2025 revenue of $4.14 billion to $4.15 billion,
04:29up from the prior guide of $3.89 billion to $3.9 billion.
04:33Analysts were forecasting full-year revenue of $3.9 billion.
04:36Palantir raised its U.S. commercial revenue guidance, adjusted income from its operations guidance,
04:41and adjusted free cash flow for guidance for 2025.
04:45The company said it continues to expect positive GAAP operating income and net income in each quarter this year.
04:52No chill.
04:52It does not plan on calming down at all.
04:56And I think, you know, for us trying to figure out how we're going to trade this company with, what, 270 forward P.E.,
05:04that doesn't really matter right now.
05:06I agree with all the folks that say eventually it is, but right now it doesn't.
05:11And this means that this is going to make this harder to trade for the upside.
05:14It's definitely something that I think you want to wait and buy on a pullback once it confirms a support area.
05:20And until this thing stops performing, I think there's a lot of potential upside.
05:27Palantir's management team discussed all of this on the conference call,
05:31and we'll see how the market actually responds to that here today.
05:35I do have another article here just to get some more information on Palantir.
05:39I'll try and not repeat myself, but forgive me if there's a little bit of that.
05:43It extended its gain, reaching 168.
05:46That's actually the number that we just talked about on the trend line, interestingly enough.
05:51However, technical analysis, Mark Newton, technical analyst, excuse me,
05:54Mark Newton warned of a stretched valuation as the stock's relative strength indicator hits 95.
06:02Nothing new here.
06:03We've been talking about that stretched valuation for a while, and it hasn't mattered yet.
06:08Just saying.
06:09Newton, managing director of Fundstrat Global Advisors,
06:12posted on X that the company closed 42 deals worth $10 million last quarter,
06:15but questions remain about whether that pace is sustainable,
06:20given its valuation of 70 to 80 times revenue.
06:25All right, so if you're interested in this at all, or the thread, or the chart,
06:29because it's small and you want to see it on your own screen,
06:32there is the link to this.
06:34You can go ahead and go through that.
06:36Palantir reported revenue of $1.004 billion.
06:39That crushed analyst estimates, as we discussed.
06:43The astonishing impact, phenomenal quarter,
06:45lots of really kind of verbose things being mentioned.
06:49That car's got an aftermarket exhaust.
06:51CNBC's Jim Cramer remained bullish.
06:54Uh-oh, is that the death knell?
06:55We'll have to see.
06:56Jim Cramer remained bullish despite the elevated metrics.
06:59Quote, Palantir, when it was 50, I said it would go to 100.
07:02And when it was 100, I said it would go to 150.
07:05Now that it's topped 150, its next stop is 200.
07:08So there you go.
07:09Cramer's saying that this is going to 200.
07:12Place your bets, folks.
07:15Wedbush analyst Dan Ives calling Palantir the messy of AI.
07:19We've heard that a few times here.
07:20A projected trillion-dollar market cap within two or three years.
07:24They keep doing billion-dollar quarters.
07:25I think that's definitely going to happen.
07:28Palantir raised its full-year revenue guidance to $4.14 to $4.15 billion.
07:33That's well above the analyst estimates.
07:34Newton cautioned that, quote, late August could bring some necessary mean reversion and recommended running trailing stops on extended issues like this is a must when the air gets a bit thin.
07:49So, okay, this is actually really smart, right?
07:52If you're long in this, you probably want to take some gains.
07:55If you have a long-term position in this, like an investment, perhaps you want to trim that in accordance with your allocation parameters or your risk parameters.
08:05The stock has moved so much, so much that it is, at this point, it really behooves you to take gains.
08:11So, the trailing stop method here, something we've discussed on our program, that might be a pretty good idea.
08:17But he's also talking about August maybe bringing some necessary mean reversions.
08:22And this is kind of what I was just mentioning.
08:23We should see if there's a way that we can actually buy this on some type of support.
08:28If this pulls back into a support level and holds that, does that set up for a long?
Comments