Palantir Technologies is expected to report second-quarter results on August 3, and the stock could make a significant move following the release. The company posted 85% year-over-year revenue growth in the first quarter and guided for second-quarter revenue between $1.797 billion and $1.801 billion, while Wall Street analysts project $1.81 billion, representing about 81% growth. Despite a roughly 35% decline from its all-time high last October, Palantir still trades at a high valuation of around 40 times earnings, which may pressure the stock if revenue growth decelerates below the prior quarter's pace. The author suggests that if growth falls short of the 85% mark, investors could sell off shares, potentially driving a large downward move.
Palantir Technologies Inc.High valuation and risk of decelerating revenue growth may pressure stock after earnings.