Man, the market got totally blindsided today by Palantir technologies $PLTR. Just imagine, the stock instantly exploded and clocked a massive gain of around 30% in a single trading session. If you're a trader staring at your monitors right now, your heart definitely skipped a beat seeing all that green.
The main trigger? Palantir just dropped a quarterly earnings report that completely shattered Wall street's expectations. Looking at the data from coin bureau, palantir's Q2 report is absolute beast mode.
Total revenue blew past $1.94 billion, shooting up 93% year over year and crushing the market's $1.8 billion estimate. On top of that, net income rocketed by 225% to hit $1.06 billion, alongside a full year guidance upgrade to $8.16 billion. This surge was heavily backed by their US commercial segment which surged 149%. No wonder the market welcomed this with massive buying volume.
If we check out the GAAP net income quarterly chart, the growth in clean profit has been super consistent quarter after quarter.
From that data, net income climbed smoothly all the way to $1.062 million this Q2. In my personal opinion, palantir is still totally worth it for a long tarm hold. But come to think of it, isn't this one of those stocks that ordinary people don't talk about all that much? Yet, from a fundamental business standpoint, it's seriously top tier.
On the flip side, if we break down the daily chart movement, this stock has a pretty wild personality. Before this crazy pump happened the price went through a deep correction, dropping all the way down to around the $106.70 zone. That drop held strong at that support level before violently bouncing back, shooting straight up, and breaking through to the $164.63 price zone.
Its price action is super aggressive. When it pumps, it can surge in the blink of an eye. But when it drops, the pullback can crash down hard in ways you honestly wouldn't expect. The volatility is insane, so you definitely need nerves of steel to keep up with it.
To wrap it up, palantir is basically a double edged sword. From a business and financial standpoint its performance is amazing for the long haul. But price wise, it's prone to wild swings. For us traders the key is keeping risk management tight don't get caught fomoing at the absolute peak and end up getting crushed by the market waves.
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⛔Disclaimer - This analysis is for educational purposes and reflects personal opinion only, not financial advice. Always practice risk management and use stop losses (SL) according to your own risk tolerance.
Posted Using INLEO
