What Happened?
Shares of data-mining and analytics company Palantir (NYSE:PLTR) jumped 9.6% in the morning session after the company announced plans to transfer its stock exchange listing from the New York Stock Exchange to the Nasdaq Stock Exchange. Palantir expects to begin trading on the Nasdaq starting November 26. The stock's positive reaction suggests that investors anticipate the Nasdaq listing will attract more technology-focused funds, potentially increasing demand for Palantir shares. Nasdaq is often preferred by tech investors due to its concentration of technology companies, which may enhance Palantir's visibility and appeal within this sector.
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What The Market Is Telling Us
Palantir’s shares are very volatile and have had 20 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.
The previous big move we wrote about was 10 days ago when the stock gained 22.9% on the news that the company reported a "beat and raise" quarter. Third-quarter results blew past analysts' revenue and EBITDA expectations. Sales improved during the quarter due to solid demand for Palantir's AI offerings (powered by its artificial intelligence platform) across the U.S. government and commercial sectors and more efficient scaling of solutions from prototypes to production. The U.S. market, in particular, demonstrated strong growth with commercial revenue up 54% year-over-year, driven by large deals and increasing customer counts, while the government segment achieved a 40% increase, supported by new AI-driven contracts.
Palantir also raised its full-year revenue and adjusted operating income guidance, suggesting the improved momentum might be maintained heading into the last quarter of the year.
Overall, this was a very good quarter, highlighting steady and strong execution for a company that many are skeptical of due to its large, lumpy contracts and premium valuation.
Palantir is up 286% since the beginning of the year, and at $63.99 per share, has set a new 52-week high. Investors who bought $1,000 worth of Palantir’s shares at the IPO in September 2020 would now be looking at an investment worth $6,733.
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