Categories: Invest

Should you invest in Palantir shares after solid Q2 results?

Palantir Technologies Inc. (NYSE:PLTR) shares on Thursday surged more than 11% after announcing its most recent quarterly results. The company reported its fiscal Q2 revenue and earnings, beating analyst expectations. Palantir also issued a better than expected topline guidance for Q3 results.

Palantir’s non-GAAP Q2 earnings per share of $0.04 beat expectations by 13.08%, while GAAP earnings came in line at -$0.07. On the other hand, revenue for the quarter grew 49% from the same period a year ago to $375.64 million, outperforming expectations by $14.54 million.


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The company forecasts a Q3 revenue of approximately $385 million, slightly better than the consensus Street expectation of $380.13 million.

Why buy Palantir Technologies shares in Q3 2021?

From a valuation perspective, Palantirl shares trade at a steep valuation of 107.97 in the forward P/E ratio. Therefore, value investors may look for alternatives in the market. However, with analysts expecting PLTR earnings per share to grow at an average annual rate of nearly 50% over the next five years, growth investors may find the stock attractive.

Therefore, although Palantir shares have rallied more than 161% over the last 12 months, it seems the bull-run could continue further based on its growth prospects. However, there could be short-term turbulence, with the stock gaining just 6.18% this year.

Source – TradingView

Palantir stock price predictions for August 2021

Technically, Palantir Technologies shares appear to have recently spiked after crossing above the 100-day moving average. However, the stock price is yet to hit overbought conditions in the 14-day RSI. Therefore, the current bull run could continue in the coming days before hitting a critical resistance level.

Investors can target extended rebound profits at approximately $27.55 or higher at $30.30. On the other hand, the support levels are $23.13 and $20.71. The PLTR stock trades at $24.91 as of this writing.

The case for buying Palantirl shares in Q3 2021

In summary, although Palantir stock is up more than 161% over the last 12 months, this year continues to be choppy, with shares gaining just over 6%. Therefore, with the company issuing better than expected revenue guidance for Q3 after smashing Q2 expectations, the current rally could continue in the coming days.

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