Palantir Looks Very Enticing Ahead Of Q2 Earnings

Bay Area Ideas 5.33K Followers Follow Summary Palantir Technologies remains a 'Strong Buy' ahead of Q2 earnings, with robust business activity and improving profitability expected. Q2 guidance implies 79% YoY revenue growth and 130% YoY adjusted operating income growth, supporting a rule of 40 score near 138%. PLTR has historically outperformed estimates, and in Q2, the company continued their strong commercial push to reduce government contract dependence. Valuation has contracted to a forward P/E of 82.62, making risk/reward attractive despite ongoing reputational risks. MengWen Guo/iStock via Getty Images Introduction In late May, I reiterated my "Strong Buy" rating on Palantir Technologies Inc. ( PLTR ) after analyzing their Q1 results. Growth was accelerating, demand was robust, and profitability was also improving. Furthermore, the valuation saw contraction, and so I viewed the risk/reward as favorable This article was written by Bay Area Ideas 5.33K Followers Follow I'm a full-time investor with a strong focus on the tech sector. I graduated with a Bachelor of Commerce Degree with Distinction, major in Finance. I'm also a proud lifetime member of the Beta Gamma Sigma International Business Honor Society. My core values are: Excellence, Integrity, Transparency, & Respect. I always, to the best of my ability, hold true to these values which I believe are key for long-term success. I would like to invite all of my readers to leave their constructive criticism and feedback in the comments section so that I can further enhance the quality of my work moving forward. Thank you and God Bless America! Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.