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Here's Why Palantir Stock Surged Today

By Joe Tenebruso - May 11, 2021 at 6:45PM

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Demand for the company's big data services is booming.

What happened

Shares of Palantir Technologies (PLTR -2.97%) jumped 9.4% Tuesday after the data analytics specialist delivered solid first-quarter results. 

So what

Palantir's revenue soared 49% year over year to $341 million. The software company enjoyed strong gains across both its U.S. government and commercial businesses, which saw revenue rise 83% and 72%, respectively.

A person is pointing to a digital stock char that rises, then falls, then rises again.

Investors bid up Palantir Technologies' stock price Tuesday. Image source: Getty Images.

Palantir's cash generation also improved dramatically. Its operating and adjusted free cash flow increased to $117 million and $151 million, up from negative $287 million and negative $290 million in the year-ago quarter.

Now what

Management anticipates revenue will rise 43% to $360 million in the second quarter and at least 30% for the full year. It also expects Palantir to produce $150 million in adjusted free cash flow in 2021.

Interestingly, CFO David Glazer disclosed during a conference call with analysts that Palantir had begun accepting Bitcoin (BTC -8.93%) as a form of payment from its customers. Glazer also said the company was considering converting some of its $2.3 billion in cash reserves into the popular cryptocurrency.

"It's definitely on the table from a treasury perspective as well as other investments as we look across our business and beyond," he said.

Joe Tenebruso has no position in any of the stocks or cryptocurrencies mentioned. The Motley Fool owns shares of and recommends Bitcoin and Palantir Technologies Inc. The Motley Fool has a disclosure policy.

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Palantir Technologies Inc. Stock Quote
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