One of the biggest artificial intelligence (AI) boom breakouts has been on a dip lately. Palantir Technologies (NYSE:PLTR) is down for the month, although it recently picked up some momentum and is pulling into the green for the week. Now, the dynamic tech sector innovator is gearing up to report earnings for the latest quarter on May 6, and shares are rising. This sets a positive tone for PLTR stock as the company prepares to reveal how things have been going for it since the year began. Despite its success, Palantir seems to consistently attract its fair share of naysayers who believe its growth won’t continue. The upcoming earnings report will do much to determine its trajectory for the second half of the year.
With this key earnings report quickly approaching, the question must be asked: Is PLTR stock a buy ahead of earnings? This warrants an in-depth look, especially given how volatile Palantir has been lately.
Is PLTR Stock a Pre-Earnings Buy?
There’s no denying that Palantir is one of the stars of the AI race. Shares have surged almost 200% over the past year, managing to shake off any volatility. For investors, this should be reassuring, as PLTR stock hasn’t suffered any major setbacks, despite what the negative buzz might suggest. But through it all, it remains the rare definition of a meme stock with actual growth potential. This makes it a buy as earnings draw close, but let’s explore why that is.
As noted, Palantir is a truly dynamic company. While the company is known for its work in the field of big data analytics, it also has a history of procuring lucrative government contracts. At a time when the U.S. military had plenty of need for its services, this was an excellent boon. However, PLTR stock has benefitted greatly from the company’s ability to fill both private and public sector needs through its wide variety of products and services.
InvestorPlace contributor Terel Miles recently assessed the commercial applications of Palantir’s Foundry platform, a valuable tool for businesses. In his words:
“What sets Palantir apart is its ability to sift through unstructured data, like images and videos. This long-stranded history in the machine learning arena as well as dealing with complex data is what makes their technology highly coveted by government agencies. Moreover, Palantir’s new Artificial Intelligence Platform (AIP) platform continues to gain traction as commercial revenue increased 70% year over year in Q4 2023.”
Investors should take some comfort in seeing that Palantir has a clear edge over competitors. The tech sector is ever-growing, but this company remains a dominant player in multiple valuable markets. PLTR stock will likely continue rising as May 6 approaches. If the report is good, investors will wish they had stocked up on shares beforehand.
On the date of publication, Samuel O’Brient did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
