Palantir Soars 14% After S&P 500 Inclusion, Secures 5th Spot in WSB Rankings

Palantir has secured the 5th position in the latest WSB rankings, maintaining its position from the previous day.

Palantir (PLTR) saw a significant 14.08% increase, marking a two-day upward streak with a total gain of 14.72%. The stock reached its highest trading price since February 2021 during the recent session.

In a noteworthy development, Palantir was recently included in the S&P 500 Index, a move that led to an over 14% jump in its stock price overnight. This inclusion will take effect before the U.S. market opens on September 23.

Palantir reported a 27% year-over-year revenue increase in Q2, with U.S. commercial revenues, including those from its AI platform (AIP), growing by 55%. The number of customers surged by 83%, fueled by its robust AI capabilities, which quickly adapted to the rising trend of generative AI. The company's AI platform experienced substantial demand, with engineers working closely with clients to drive success.

B of A Securities adjusted Palantir's target price from $30 to $50, maintaining a "buy" rating. Palantir, an analytics software company, focuses on enhancing organizational efficiency through data. Founded in 2003 and headquartered in Denver, it caters to both commercial and government clients via its Foundry and Gotham platforms.

Wedbush recently reaffirmed its "outperform" rating with a new target price of $38, following Palantir's inclusion in the S&P 500. Analyst Dan Ives described this event as a "validation moment" for the company, highlighting its profitability and cash flow potential, especially its US commercial business as a key growth driver.

Palantir's AIP demonstrates its ability to complete specific AI-driven tasks and facilitate real-world actions for clients, leading to potential long-term deals. This inclusion is considered a significant milestone, heralding a new era of corporate growth and profitability for Palantir in the coming years.

Year-to-date, Palantir's stock has soared by an impressive 165%, reflecting investors' optimism about the company's generative AI tools. In Q2, Palantir's total revenue grew by 27% year-over-year to $678 million, exceeding Wall Street expectations of $652.8 million. The company's net income for the quarter also grew by 20% to $134 million, outpacing analysts' estimates of $82.8 million. Adjusted EBITDA reached $262 million, a substantial 39% increase year-over-year.