Palantir Is Now Eligible for S&P 500 Inclusion
On November 3rd, Palantir released its third-quarter financial results. The Q3 figures were particularly encouraging as the company surpassed its revenue and EPS expectations. This marks the third time in the past four quarters that the company has exceeded both its revenue and EPS targets.
Here is a brief summary of Palantir’s Q3 financial result:
- Revenue increased 17% to $558 million, beating analyst expectations of $548.6 million
- Net income of $72 million, or 3 cents per share, compared with a net loss of $123.9 million in the year-ago quarter
- U.S. commercial revenue grew 33% year over year
- U.S. commercial customer count increased 37% year over year
- Raised revenue guidance for the full year to between $2.216 billion and $2.22 billion, from $2.212 billion
- Expects to report between $599 million and $603 million in revenue during its fourth quarter.
What is Palantir?
Palantir or Palantir Technologies is a software firm with expertise in the field of big data analytics. Its software is deployed by government agencies, financial institutions, and healthcare organizations to tackle intricate challenges. Palantir’s software solutions empower clients to seamlessly integrate, oversee, and analyze vast quantities of data from various origins. This data can be leveraged to detect patterns, uncover trends, forecast outcomes, and generate fresh insights.
Palantir S&P 500 Inclusion: Criterio for S&P 500 Inclusion
In order to be considered for inclusion in the S&P 500 index by the Index Committee, a company must satisfy the following requirements:
- The company should be based in the United States.
- It must have a market capitalization of at least $8.2 billion.
- The company’s shares must exhibit high liquidity.
- At least 50% of its outstanding shares must be accessible for public trading.
- The company should have reported positive earnings in its most recent quarter.
- The sum of its earnings over the previous four quarters must be positive.
Palantir S&P 500 Inclusion: Benefits
Being included in the S&P 500 could bring several advantages to Palantir, such as:
Enhanced visibility and investor interest: The S&P 500 is closely followed by trillions of dollars in assets, including numerous index funds and ETFs. Consequently, Palantir could gain exposure to a significantly larger pool of potential investors upon its inclusion in the index.
Increased stock value: Inclusion in the S&P 500 often signifies a vote of confidence in a company’s long-term prospects. This can result in greater demand for the company’s shares and a higher stock price.
Access to additional capital: S&P 500 companies are eligible for borrowing at lower interest rates compared to non-S&P 500 firms. This advantage can provide Palantir with greater financial flexibility for investment in growth and development.
Palantir S&P 500 Inclusion: Performance of PLTR
Palantir stock price has been surging this year. The stock is currently trading above $15 and this year, PLTR is up over 100%. In the last 30 days, Palantir has managed to gain around 20%. After the company declared its Q3 earnings, the PLTR stock skyrocketed, and by the end of the day it closed over 20% higher.