Despite better figures than estimates and an increase in forecasts for the year, Palantant falls on the stock market after the announcement of its results.
Palant, one of the actions that benefits the most of the hype around artificial intelligence in recent months, published its results this Monday evening. And they disappointed investors: the action drops 9% in post-closet negotiations.
No bad figures
The company specializing in data analysis and IA software, however, reported figures that exceeded analysts’ expectations. But that very little: quarterly turnover reaches $ 883.9 million (+39% in one year), against an estimate of 862.8 million. Net profit has doubled, from 105.5 to 214 million dollars (8 cents per share). The adjusted benefit is 13 cents per share, which meets the expectations of experts.
Another element, rare in this season of results: Palantir has increased its forecasts for the year. Instead of 3.74 to 3.76 billion dollars in previously indicated turnover, the company now expects 3.89 to 3.90 billion. CEO Alex Karp has no shortage of superlatives to describe the prospects: the adoption of group products would have become a “rush”, a “whirlwind” and a “tectonic movement”. The demand for the American defense is notably still increasing … while fears of reductions in budgets had shaken the action, earlier this year.
Meme stock ?
These are all the elements gathered for, normally, to take off a share on the stock market. But this is obviously not the case with palantants. It is not a normal action, and some even consider it as a meme stock (These very volatile actions and very hypered by scholars, like Gamesop at the time of the pandemic).
The action therefore drops, because the market expected an explosion of estimates, analyze experts with Reuters. “The only thing that goes beyond the results announced is the expectations, and that is the reason why the action is down. Investors expected even more,” said Gil Luria, analyst at Da Davidson. “Investors hoped for fireworks, not only results. Perhaps … a turnover ten times better than estimates,” adds Michael Ashley Schulman, CIO of Running Point Capital, ironically.
The action is, however, still up 49.3% over the year, if we take into account its level on Monday evening after the fall in post-closing exchanges. This while other technological players were severely punished at the start of the year.
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