Wall Street Breakfast Podcast: Palantir To Top Microsoft?

Palantir Technologies (PLTR) is rallying sharply after reporting Q2 results that topped Wall Street expectations and raising its full-year outlook. Palantir posted adjusted EPS of $0.41 as revenue surged 93% year over year to $1.94B. U.S. revenue jumped 115%. Analysts had expected adjusted EPS of $0.34 on revenue of $1.81B. The company closed 220 deals worth at least $1M during the quarter, including 98 valued at $5M or more and 73 worth at least $10M. "Demand for AI sovereignty has now been unleashed," CEO and co-founder Alex Karp said. "And Palantir is the only company that has demonstrated it can transform tokens into actual economic value." For the full year, Palantir now expects revenue of $8.15B to $8.16B, up from prior guidance of $7.65B to $7.66B. Analysts were expecting $7.73B. SA analyst Julian Lin said the company is now within striking distance of overtaking Microsoft (MSFT) as the unofficial world's most profitable software company by margin. As capex concerns continue to weigh on hyperscalers, a top Google executive says the payoff may not be immediate, but it could be transformational. Google (GOOG) (GOOGL) DeepMind Chief Strategy Officer Jasjeet Sekhon said the technology industry's heavy investment in AI-related capital spending is laying the groundwork for AI's next stage. Known as recursive self-improvement, or RSI, the concept describes AI systems capable of automatically creating improved versions of themselves. While long associated with artificial general intelligence, the term RSI has gained traction in recent weeks as technology companies increasingly discuss the concept. Sekhon acknowledged that current AI revenues "don't sustain the capital expenditures we're making so far." But he argued that betting against the industry's long-term direction "would appear to be unwise." As he put it: "Steam engines were used to create the next steam engine." President Donald Trump criticized Exxon Mobil (XOM) and Chevron (CVX) for their soaring profits, saying the two largest U.S. oil companies are "making too much money" and urging them to "give some of that back to the public" by lowering gasoline prices. "I don't like it... I'll say it loud and clear. I'm not happy about it," Trump told reporters, three days after the companies reported blowout second-quarter earnings. Earlier Monday, Trump also took aim at Chevron CEO Mike Wirth for not crediting his administration's efforts to support the oil industry during Wirth's weekend appearance on Fox News. In premarket trading Stock index futures are higher, with Dow futures (INDU) getting a lift form Caterpillar (CAT) on solid earnings, while Palantir is helping Nasdaq 100 futures (NDX). Treasury yields are slightly higher across the curve after the tumble in the previous session. On the economic calendar 10:00 a.m. June Factory Orders 10:00 a.m. JOLTS