Palantir Technologies (PLTR) reported first-quarter adjusted earnings that met expectations while revenue growth came in above Wall Street targets. Palantir stock reversed up in afternoon trading on Tuesday as the tech-heavy Nasdaq composite managed to close slightly down after plunging earlier in the session.
Denver-based Palantir earnings for the March quarter were 4 cents per adjusted share. Revenue jumped 49% to $341.2 million, the maker of data mining software said.
Analysts estimated Palantir earnings of 4 cents a share on revenue of $332.2 million for the quarter that ended March 31.
Palantir rose 9.4% to close at 20.21 on the stock market today. The stock had dropped more than 7% to 17.06 after the company released earnings. Shares in Palantir fell 6.5% on Monday to their lowest point since late November.
Palantir stock has swooned in 2021 amid a broad decline in software growth stocks.
In addition, Palantir said first-quarter adjusted operating income rose 34% to $116.6 million.
On the Palantir earnings call, Chief Financial Officer David Glazer told analysts it may purchase cryptocurrency such as Bitcoin as an investment, similar to Tesla (TSLA) and Square (SQ), according to a report.
Palantir Stock: Revenue Outlook Above Expectations
For the current quarter ending in June, Palantir forecast revenue growth of 43% to $360 million. Analysts polled by Zacks Research had projected second-quarter revenue of $343 million, up 32%.
Government agencies use Palantir software for intelligence gathering, counterterrorism and military purposes. The software maker aims to expand into the health care, energy and manufacturing sectors.
Heading into the Palantir earnings report, the software stock owns a Relative Strength Rating of 70 out of a best-possible 99.
Palantir’s governance structure gives co-founders Peter Thiel, Alex Karp and Stephen Cohen long-term control of the company through super-voting rights.
A direct listing of Palantir stock was launched on Sept. 30 priced at 7.25 a share. Palantir hit an all-time high of 45 on Jan. 27. The software stock has retreated nearly 58% from that high.
Even after the correction, Palantir stock trades at a high multiple of estimated revenue, Jefferies analyst Brent Thill said in a recent note to clients.
Palantir Stock Trades At High Revenue Multiple
“Overall multiples for software have contracted 18% thus far in 2021 taking a breather post their expansion of 56% in 2020 vs. 26% in 2019 and 7% in 2018,” Thill said in the report.
He added: “The five highest valued names (trading on a multiple of estimated 2022 revenue) under current coverage are Snowflake (SNOW), Cloudflare (NET), CrowdStrike Holdings (CRWD), Palantir, and Datadog (DDOG).”
Cloudflare stock popped on Friday after it reported better-than-expected March-quarter earnings.
Follow Reinhardt Krause on Twitter @reinhardtk_tech for updates on 5G wireless, artificial intelligence, cybersecurity and cloud computing.