Palantir stock soars 30% as Deutsche Bank calls it a "time traveler"

[Financial News]  

Palantir Technologies shares jumped 30% on the 4th (local time). The rally was fueled by earnings released after the previous day's market close, which eased concerns that software would be overtaken by artificial intelligence (AI).
After CEO Alex Karp described the results as "otherworldly" during a conference call with analysts, Deutsche Bank AG praised Palantir Technologies as if it were a "time traveler."

According to Yahoo Finance, Karp said during the conference call late the previous night that the company's results were on another level, as if they came from a different world.
Revenue from both of Palantir Technologies' two main pillars, government contracts and private commercial business, nearly doubled, while net profit more than tripled.
The stock had plunged in June and July on fears that AI coding solutions would replace traditional software, but this earnings report completely reversed that trend.
Palantir Technologies shares have soared from around $25 in 2024 to the $160 range in just two years.

Louis DiPalma, an analyst at investment bank William Blair, said Palantir Technologies' AI platform (AIP), launched in 2023, was the starting point for this major leap.
Through its government platform Gotham and its private commercial platform Foundry, Palantir Technologies has integrated and analyzed vast amounts of data.
In 2023, the company added AI to these platforms.
By directly connecting generative AI to these platforms, it enabled existing customers such as ExxonMobil, Airbus SE, and Rio Tinto to use generative AI immediately based on their own data.
That AIP became the foundation of the explosive earnings growth.
Palantir Technologies' U.S. commercial revenue reached $764 million, while remaining contract value hit $6.24 billion, underscoring the company's still enormous growth potential in this earnings report.

In a research note released that day, a Deutsche Bank AG analyst team led by Brad Zelnick praised Palantir Technologies effusively.
The team upgraded the stock from "Hold" to "Buy" and nearly doubled its 12-month target price from $105 to $200.
In particular, Deutsche Bank AG described Palantir Technologies as a "time traveler." In the note, the analysts said, "While other software companies are still trying to prove that AI can make real money, Palantir looks like a 'time traveler' that has already arrived ahead of everyone else at the AI future they only dream about."
Palantir Technologies closed at $162.91, up $36.96, or 29.43%, on the day.

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