Palantir Technologies, a software developer for the military, has seen a remarkable increase in its shares, which rose by 11% to an all-time high after announcing plans to move its listing from the New York Stock Exchange to the Nasdaq. This move has pushed the stock price past $65.77 at the close, bringing the company’s market cap to $150 billion. The shares have surged by over 45% since the release of Palantir’s better-than-expected earnings report last week and have nearly quadrupled in value this year.
Palantir is set to start trading on the Nasdaq on Nov. 26 under the ticker symbol “PLTR.” While the change in listing sites does not impact the company’s underlying fundamentals, board member Alexander Moore hinted on social media that the move could benefit retail investors by prompting billions of dollars in purchases by exchange-traded funds. Moore’s post has since been deleted, and his firm, 8VC, has not responded to CNBC’s request for comment.
Following the release of its third-quarter earnings, Palantir reported revenue and earnings that exceeded estimates, along with a fourth-quarter forecast that surpassed Wall Street’s expectations. CEO Alex Karp expressed satisfaction with the company’s performance, attributing it to the growing demand for artificial intelligence technologies. The company’s U.S. government revenue rose by 40% year-over-year to $320 million, while U.S. commercial revenue increased by 54% to $179 million. Palantir also highlighted a five-year contract to expand its Maven technology within the U.S. military.
The recent surge in Palantir’s stock price coincides with the period following the presidential election. The company’s ties to the Trump camp have positioned it as a potential beneficiary, given co-founder and Chair Peter Thiel’s support for Donald Trump. Thiel’s holdings in Palantir have significantly increased in value since the earnings report and the election.
In September, Palantir was added to the S&P 500 stock index by S&P Global. While the stock rally has been impressive, analysts at Argus Research believe that the stock price may have outpaced the company’s financials and growth projections. Despite downgrading their 12-month recommendation to a hold, the analysts still maintain a long-term buy rating on the stock, noting that Palantir had a “stellar” quarter.
Overall, Palantir’s move to the Nasdaq and its strong financial performance signal a positive outlook for the company in the coming months. Investors will be closely watching how the stock performs in the new listing and how the company continues to capitalize on the growing demand for its AI technologies.
