Why Palantir Shares Are Shooting Higher In Tuesday's Premarket

Benzinga - Palantir Technologies, Inc. (NYSE:PLTR) shares surged higher in premarket trading on Tuesday.

The upside came on the back of a fairly robust quarterly report from the intelligence software provider. Denver, Colorado-based Palantir reported first-quarter revenue that grew 18% year-over-year to $525.19 million, exceeding the consensus estimate and the company's guidance.

The company reversed to a profit of a cent per share from a loss of 5 cents per share in the year-ago period. On an operating basis, the company turned profitable for the first time.

Palantir also nudged up its 2023 guidance from $2.18 billion-$2.23 billion to $2.185 billion to $2.235 billion. The adjusted income from operations guidance was lifted from $481 million-$531 million to $506 million-$556 million.

In a letter to shareholders, CEO Alex Karp said the company expects to remain profitable each quarter through the end of the year.

“The depth of engagement with and demand for our new Artificial Intelligence Platform (AIP) is without precedent,” the executive said.

"We are currently mobilizing our company and sales teams in order to convert this organic and inbound interest into an expansion of our reach within the market."

Following the quarterly results, Jefferies analyst maintained a Hold rating on Palantir but lifted the price target from $8.50 to $10.

Deutsche Bank, which is bearish on the stock, upped the price target from $6 to $7.

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According to Benzinga Pro data, Palantir shares jumped 18.09% to $9.14 in premarket trading on Tuesday, signaling that the stock could breach the $9 level to the upside for the first time since mid-April.

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