The price of a share of Palantir Technologies’ stock increased to $9.46 on Tuesday, May 9, and then skyrocketed to $9.85 the next day, May 10. Earlier in the week, SimpleFX traders who went long around $7.30 generated enormous returns for themselves.
Palantir Gains Over 28% In Two Days
The computer business Palantir, best known for its data mining platforms, increased its share price by more than 23 percent after announcing its earnings report for the first quarter, which were higher than analysts’ forecasts. Compared to the break-even point anticipated for the first quarter of 2023, the firm co-founded by Peter Thiel reported earnings of $0.05 per share, representing an increase of nearly 15%.
Palantir provided an optimistic view of its future, and the company even aligned its forecasts with the most cutting-edge and trendy forms of artificial intelligence. As a result, the market’s response in the short term was perfectly rational. Have investors reacted too quickly to the positive news? Probably not, considering that the price of the company’s shares grew by another 5% the next day, reaching 9.85% by the time Wednesday’s trading session came to a close. This led to a gain of 28.5% in just two trading days as a direct consequence.
In addition, the corporation provided forecasts of its profitability for the entire year. The firm’s chief executive officer, Alex Karp, referred to the demand for the company’s AI technology as “unprecedented.”
