Palantir Technologies Inc. PLTR extended gains 4.57% in after-hours trading on Monday, reaching $168 following a blowout second-quarter earnings report. However, technical analyst Mark Newton warned of stretched valuations as the stock’s Relative Strength Index indicator hit 95.
Check out the current price of PLTR stock here.
Technical Warning Emerges Despite Strong Earnings Beat
Newton, Managing Director at Fundstrat Global Advisors, posted on X, that the company closed 42 deals worth more than $10 million last quarter, but questions remain about whether that pace is sustainable, given its valuation of 70 to 80 times revenue.
Q2 Results Obliterate Wall Street Estimates
Palantir reported revenue of $1.004 billion, crushing analyst estimates of $939.71 million and marking 48% year-over-year growth. Adjusted earnings per share hit $0.16, beating the consensus of $0.14. U.S. revenue surged 68% to $733 million, driven by 93% growth in commercial revenue to $306 million.
CEO Alex Karp called it “a phenomenal quarter,” citing AI’s “astonishing impact” on business performance. The company closed 157 deals over $1 million, including 42 deals exceeding $10 million.
Bulls Target $200 Despite Valuation Concerns
CNBC’s Jim Cramer remained bullish despite the elevated metrics. “Palantir, when it was $50 I said it would go to $100, when it was at $100 I said it would go to $150 and now that it has topped $150 its next stop is $200,” Cramer posted on X.
Wedbush analyst Dan Ives, calling Palantir “the Messi of AI,” projected a trillion-dollar market cap within two to three years.
Guidance Raised Amid Mean Reversion Warning
Palantir raised full-year 2025 revenue guidance to $4.14-4.15 billion from $3.89-3.90 billion, well above analyst expectations of $3.9 billion. The third quarter revenue guidance of $1.083-1.087 billion significantly exceeded estimates of $981.1 million.
However, Newton cautioned that “late August could bring some necessary mean reversion” and recommended “running trailing stops on extended issues like this a must when the air gets a bit ‘thin.’”
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