Palantir’s stock jumps, but ‘hearty rally’ sparks debate over profits

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Palantir’s stock jumps, but ‘hearty rally’ sparks debate over profits
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Palantir's stock is surging 13% in Tuesday morning trading, but analysts can't agree on whether that big boost is warranted.

Palantir Technologies Inc.’s stock is surging 13% in Tuesday morning trading, and analysts can’t agree on whether that big boost is warranted.

The stock’s sharp move higher comes in the wake of Palantir’s PLTR fourth-quarter earnings report, which brought a surprise profit — the data-software company’s first ever — but also an underwhelming revenue forecast for the year ahead.Though Monness, Crespi, Hardt & Co. analyst Brian White has a neutral view on Palantir’s stock, he was willing to give the company credit for the latest numbers.

Others took a harsher view, including Citi Research analyst Tyler Radke, who isn’t quite sold on the profit cheers. “While the company beat non-GAAP operating margin guidance, free-cash-flow margin was 9.6% for the year, down from 21% in calendar 2021,” he wrote. “We see potential for a modest beat-and-raise cadence but do see downside risk to guidance from macro uncertainty.”

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