It’s one of the most followed earnings reports of the season, with Palantir dropping a crypto-sized bombshell on its investors last night.
There seem to be just two things these days that can send a company’s stock price into a near double-digit swing. The first is a good earnings report; the second is Bitcoin.
Palantir (NYSE: PLTR) had both in their roster last night.
“Tell us more!”
Starting with the numbers, things look good for Palantir:
- Adjusted EPS: $0.04, on par with expectations.
- Revenue: $341 million vs. $332.2 million expected — up 49% YoY.
- Total customers: 149 — up from 125 last September.
Not bad for a company that most investors still have no clue what they actually do — and at this point, we’re all too afraid to ask. The software company, which primarily specializes in big data analytics, has had a tough 2021 so far, falling 55% from its January highs of $45 per share to just $20.21 as of market close Tuesday. But its latest venture could help it climb again.
“Seriously, just get to the Bitcoin!” I hear you grumble.
Well, I was about to get to that, as Palantir announced yesterday that it was now accepting Bitcoin as payment for its services, following in the footsteps of Tesla, PayPal, Yum Brands, and more. To throw more fuel on this speculative fire, Palantir CFO Dave Glazer even stated that Palantir was “open for business” and that Bitcoin is “definitely on the table” as a place to park the company’s cash.
A word of caution though, as this move to appeal to the stereotypical stimulus check-investing millennial should not distract retail investors from the company’s fundamentals. Potential investors would be better off looking at Palantir’s widening operating and net loss margins from Q1 and getting a grasp on how this business actually operates rather than just whether it accepts Bitcoin or not.
A MyWallSt subscription gives you access to over 100 market-beating stock picks and the research to back them up. Our analyst team post daily insights, subscriber-only podcasts and the headlines that move the market. Get your free trial now!
MyWallSt operates a full disclosure policy. MyWallSt staff currently holds long positions in companies mentioned above. Read our full disclosure policy here.