Amid buzz over artificial intelligence stocks, Palantir Technologies (PLTR) on Monday reported second-quarter profit and sales that met analyst estimates. But PLTR stock wavered as the company announced a $1 billion buyback.
For the period ended June 30, Palantir earnings on an adjusted basis were 5 cents. Analysts expected PLTR stock to swing to a 5-cent profit from a 1-cent loss a year earlier.
Also, revenue rose 13% to $533 million, the maker of data analytics software said. That met Wall Street targets. As expected, revenue from investments in special-purpose acquisition companies fell in the quarter.
Denver-based Palantir said government customer revenue climbed 15% to $302 million, in line with estimates. Commercial customer revenue rose 10% to $232 million, the company said.
Palantir gets nearly 60% of its revenue from government agencies. In addition, the software maker has expanded into the health care, energy and manufacturing sectors.
PLTR Stock: Forecasts Going Forward
For the current quarter ending in September, Palantir predicted revenue of $555 million vs. estimates of $553 million. For full-year 2023, Palantir forecast revenue of $2.21 billion at the midpoint of its outlook.
Palantir stock fell 3.8% to 17.30 in extended trading on the stock market today.
As of Friday’s market close, Palantir stock had jumped 183% thus far this year as investors chase AI stocks. PLTR stock hit a 52-week intraday high on July 19.
Further, Palantir has been profitable using generally accepted accounting principles, or GAAP, for three straight quarters.
Palantir’s AI Pilot Programs
Meanwhile, Palantir has told analysts that new AI-related pilot programs are underway. However, it’s unclear when those programs would convert into revenue-generating programs.
With government customers, Palantir for two decades has used AI tools for intelligence gathering, counterterrorism and military purposes. Those AI tools relied upon pattern recognition to create predictive models.
The new buzz is about generative AI. It produces media content, drug protein sequencing, computer programming code and many other forms of digital data.
Palantir is integrating the human-friendly, large language models used in generative AI into its software platform. Rivals also are doing the same thing.
PLTR stock holds a Relative Strength Rating of 52 out of a best-possible 99, according to IBD Stock Check-up.
Follow Reinhardt Krause on Twitter @reinhardtk_tech for updates on 5G wireless, artificial intelligence, cybersecurity and cloud computing.
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