Please ensure Javascript is enabled for purposes of website accessibility

Here's Why Palantir Stock Surged Today

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

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

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.

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned

Palantir Technologies Inc. Stock Quote
Palantir Technologies Inc.
$9.15 (-2.97%) $0.28
Bitcoin Stock Quote
$21,469.91 (-8.93%) $-2,105.62

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning analyst team.

Stock Advisor Returns
S&P 500 Returns

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 08/19/2022.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.