Will AI create the world’s first trillionaire? Our team just released a report on the one little-known company, called an “Indispensable Monopoly” providing the critical technology Nvidia and Intel both need. Continue \u00bb<\/a><\/p>\n Image source: The Motley Fool.<\/p>\n Palantir also heads into earnings amid recent analyst concerns. On May 1, HSBC analyst Stephen Bersey downgraded the stock from a buy rating to hold, also cutting his price target by $54 to $205 per share.<\/p>\n Bersey is concerned that AI competitors have seen Palantir’s success in making its AI coding capabilities accessible to those without AI coding experience and are now seeking to replicate it.<\/p>\n Similar capabilities are now being offered by the likes of OpenAI and Anthropic, according to Bersey, which could erode Palantir’s moat<\/a> and barriers to entry, potentially driving down the company’s valuation.<\/p>\n Here’s how Palantir can impress the market.<\/p>\n With a high valuation comes great expectations<\/p>\n According to Barron’s, consensus estimates call for Palantir to report adjusted earnings per share (EPS) of $0.28, revenue of roughly $1.5 billion, and a 54% free cash flow margin.<\/p>\n These results would certainly be extraordinary, as they would represent 115% year-over-year adjusted EPS growth, 75% revenue growth, and a 700-basis-point (7%) expansion in free cash flow<\/a> margin.<\/p>\n Unfortunately, the company is likely going to have to do more than just beat estimates if it wants a positive reaction from the market. That’s because of Palantir’s incredibly high valuation, which can be more of a curse than a blessing at times.<\/p>\n PLTR PE Ratio (Forward)<\/a> data by YCharts<\/a><\/p>\n In my view, Palantir will also need to deliver strong second-quarter guidance and possible even raise its full-year guidance. In the second quarter, consensus analyst estimates call for nearly $1.68 billion in revenue and $950 million in adjusted income from operations, according to data from Visible Alpha.<\/p>\n Here is Palantir’s full-year guide from management, along with Visible Alpha estimates:<\/p>\n Revenue between $7.182 and $7.198 billion. Visible Alpha: $7.273 billion.U.S. commercial revenue to grow at least 115% to at least $3.144 billion Visible Alpha: $3.140 billionAdjusted income from operations between $4.126 and $4.142 billion. Visible Alpha: $4.186 billionAdjusted free cash flow of between $3.925 and $4.125 billion. Visible Alpha: $4.005 billion<\/p>\n As you can see, consensus estimates project that Palantir will beat the top end of management’s full-year internal guidance for revenue and adjusted income from operations, while falling in the middle of the guide on adjusted free cash flow and slightly below U.S. commercial revenue.<\/p>\n Providing forward guidance that beats or misses consensus estimates by even just a little bit can move a stock in a big way, depending on broader sentiment. Leaving guidance unchanged also may not be enough to win over investors right now.<\/p>\n While all of these numbers matter, I think forward guidance for full-year U.S. commercial revenue that beats Wall Street estimates would give investors more confidence that the company has maintained its moat, at least for the time being.<\/p>\n Ultimately, I’m still very cautious on the name given the elevated valuation, and don’t recommend investors try to trade the stock on a near-term event like earnings.<\/p>\n Should you buy stock in Palantir Technologies right now?<\/p>\n Before you buy stock in Palantir Technologies, consider this:<\/p>\n The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks<\/a> for investors to buy now\u2026 and Palantir Technologies wasn\u2019t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.<\/p>\n Consider when Netflix made this list on December 17, 2004… if you invested $1,000 at the time of our recommendation, you\u2019d have $496,473!* Or when Nvidia made this list on April 15, 2005… if you invested $1,000 at the time of our recommendation, you\u2019d have $1,216,605!*<\/p>\n Now, it\u2019s worth noting Stock Advisor\u2019s total average return is 968% \u2014 a market-crushing outperformance compared to 202% for the S&P 500. Don’t miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.<\/p>\n See the 10 stocks \u00bb<\/a><\/p>\n *Stock Advisor returns as of May 4, 2026. <\/p>\n HSBC Holdings is an advertising partner of Motley Fool Money. Bram Berkowitz<\/a> has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Palantir Technologies. The Motley Fool recommends HSBC Holdings. The Motley Fool has a disclosure policy<\/a>.<\/p>\n <\/p>\n","protected":false},"excerpt":{"rendered":"Key Points One Wall Street analyst recently downgraded Palantir on concerns about its competitive moat and barriers to…\n","protected":false},"author":2,"featured_media":27061,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[2],"tags":[24,25,1320,1317,1316,1319,1318,1321,2423,2424,1310],"class_list":{"0":"post-27060","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-ai","8":"tag-ai","9":"tag-artificial-intelligence","10":"tag-futures","11":"tag-index-market-quote","12":"tag-index-market-quotes","13":"tag-index-market-symbol","14":"tag-index-market-symbols","15":"tag-indices","16":"tag-palantir-technologies-inc-cl-a","17":"tag-pltr","18":"tag-the-globe-and-mail"},"_links":{"self":[{"href":"https:\/\/www.europesays.com\/ai\/wp-json\/wp\/v2\/posts\/27060","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.europesays.com\/ai\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.europesays.com\/ai\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/ai\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/ai\/wp-json\/wp\/v2\/comments?post=27060"}],"version-history":[{"count":0,"href":"https:\/\/www.europesays.com\/ai\/wp-json\/wp\/v2\/posts\/27060\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/ai\/wp-json\/wp\/v2\/media\/27061"}],"wp:attachment":[{"href":"https:\/\/www.europesays.com\/ai\/wp-json\/wp\/v2\/media?parent=27060"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.europesays.com\/ai\/wp-json\/wp\/v2\/categories?post=27060"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.europesays.com\/ai\/wp-json\/wp\/v2\/tags?post=27060"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}![\"Palantir](\"https:\/\/barchart-news-media-prod.aws.barchart.com\/FC\/8f21f5c02f6502ef8f5b661f758ef35d\/%3Furl%3Dhttps%253a%252f%252fg.foolcdn.com%252feditorial%252fimages%252f868608%252fpltr-tmf.png%26amp%3Bw%3D700\"\/)
<\/p>\n![\"PLTR](\"https:\/\/barchart-news-media-prod.aws.barchart.com\/FC\/8f21f5c02f6502ef8f5b661f758ef35d\/%3Furl%3Dhttps%253a%252f%252fmedia.ycharts.com%252fcharts%252f5720d79ff7221d7d343d11f0eb82461d.png%26amp%3Bw%3D700\"\/)
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