Palantir Is Down 38% From Its High -- and It Just Got a Wall Street Upgrade. Time to Buy?

Yahoo Finance ·

Palantir Technologies ( PLTR +2.99% ) picked up an upgrade to a buy rating this week, and the argument behind it is one bulls have waited years to hear: the earnings have finally caught up to the price. After a 38% slide from its 52-week high of $207.52, the stock trades around $129 as of this writing. A year ago, this was a company earning $0.08 a quarter. Last quarter, however, it earned $0.34. So, have the earnings really caught up to the valuation? While the stock was losing more than a third of its value, the business kept compounding. First-quarter revenue grew 85% year over year to $1.63 billion -- and 16% from just the prior quarter -- while U.S. commercial revenue grew 133%. The forward indicators point in the same direction. Palantir closed 206 deals of at least $1 million during the quarter, and its closed total contract value -- the lifetime worth of new customer agreements -- reached $2.41 billion, up 61% year over year. U.S. government revenue grew 84%, meaning the commercial side is now the faster of the company's two engines.

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Bullish (Long) 47% · Bearish (Short) 53%

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