Up over 500% within the past year and over 100% year-to-date, Palantir investors have had plenty to cheer about, but is it still top tier after its latest Q2 earnings? Yes indeed, the company topped $1 billion in revenue last quarter, smashing Wall Street expectations.
The final Q2 numbers showed:
- Earnings per share: $0.16 adjusted versus $0.14 expected by Wall Street
- Of course, revenue was the number in lights: $1 billion as opposed to $940 million expected by Wall Street—a growth rate of 48% year-over-year
Much of Palantir’s success in the past quarter has been its flair for dealmaking. As reported by CNBC, the company closed 66 deals worth $5 million and 42 deals totaling at least $10 million. The total value of its contracts grew 140% from last year to $2.27 billion. The company already boasts government contracts that should keep the revenue flowing for its AI software tools.
“The growth rate of our business has accelerated radically, after years of investment on our part and derision by some,” said CEO Alex Karp in a letter to Palantir shareholders. “The skeptics are admittedly fewer now, having been defanged and bent into a kind of submission.”
If Palantir continues to expand exponentially, then traders may want to consider riding the upside further. With that, they could use the Direxion Daily PLTR Bull 2X Shares (PLTU ). PLTU allows traders to automatically double up their position with one trade.
In Overbought Territory?
As with any stock that’s run up exponentially within the last 12 months, there could be concerns that the stock is reaching into overbought levels. Applying a simple technical overlay, the stock was trading above its 50- and 200-day moving averages, confirming strong momentum before its Q2 earnings were announced. In conjunction with the relative strength indicator (RSI), the reading showed a 58.37 last week to indicate it hasn’t reached overbought levels. That said, there could be more runway for the stock. This could give prospective buyers confidence if they think they might be late jumping on the Palantir bandwagon.
Looking further ahead, the growth trajectory looks bright. "Motley Fool":https://www.fool.com/investing/2025/07/06/will-palantir-be-a-1-trillion-company-by-2035/ noted that investors anticipate it could cross the $1 trillion market cap line in less than 10 years. What’s behind the tremendous growth trajectory? These days, investors can’t mention exponential growth unless there’s an AI component attached to the stock, and Palantir has just that. Following Q2 results, the company also boosted its outlook for the rest of the year.
Palantir operates primarily in the data analysis realm, and in today’s business environment, information is king. It has its own robust AI platform to further enhance data-driven analysis. That said, this technology is pertinent in both the public and private sectors, both of which Palantir has clients.
If the stock sells off for any reason, consider using the Direxion Daily PLTR Bear 1X Shares (PLTD ). Rather than using options to short the stock, PLTD will allow for this exposure in an ETF format. PLTD allows for flexibility in a down-trending market to give traders the ability to profit when short-term price weakness occurs.
For more news, information, and analysis, visit the Leveraged & Inverse Content Hub.
