Palantir Technologies Inc. {{ m-tag option="price" ticker="PLTR" currency="USD" }} experienced a surge of over 8% in premarket trading following the announcement that the company would be added to the prestigious S&P 500 index.
As of Monday, the stock rose to $32.82, marking an 8.24% increase, building on a 0.56% rise from the previous trading day, where it closed at $30.33.

This upward momentum reflects Palantir's ongoing growth since its debut on the New York Stock Exchange in 2020. Palantir reported its first profitable quarter in Q4 of 2022, signaling its transition from a high-growth tech stock to one with sustained profitability.

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Financial Performance in 2023

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In the most recent Q2, Palantir's revenue grew by an impressive 27% YoY to $678 million, with net income soaring to $135.6 million, compared to $27.9 million in the same period the previous year.
The consistent rise in annual revenue growth for four consecutive quarters enabled Palantir to meet the profit requirements for inclusion in the S&P 500.

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AI Growth and Commercial Expansion

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Palantir's momentum is also fueled by its recent advances in artificial intelligence and its commercial division. The company is expanding its AIP Logic platform, which leverages AI-related strategies to drive innovation.

Notably, Palantir reported a notable surge in commercial-division sales, a key factor behind the company raising its full-year profit forecast. The company now expects to generate around $2.75 billion in sales for the year, with adjusted operating profits projected between $966 million and $974 million.

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Partnership with Microsoft for AI and Cloud Services

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Palantir's AI capabilities received a further boost through a new partnership with Microsoft {{ m-tag option="price" ticker="MSFT" currency="USD" }}. This partnership enables Palantir's software to integrate into Microsoft's Azure cloud services, particularly for government clients. Azure's OpenAI services, combined with Palantir's AI-driven solutions, will allow for secure deployments in classified environments, a key selling point for Palantir's growing client base in the defense and intelligence sectors.

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Stock Performance

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Palantir's market value has increased by more than $35 billion over the past year, demonstrating the stock's robust performance in 2023. The stock has recorded a 28% gain over the last six months, further highlighting its growing appeal to both institutional and retail investors.

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