Palantir Earnings Provide Litmus Test for 140% AI-Fueled Rally
-- Palantir Technologies Inc.’s premium valuation will be put to the test when the data analysis and software company reports results after the market close on Monday.After a blistering artificial intelligence-driven rally of more than 140% this year, the bar is high. Wall Street has become increasingly cautious about Palantir, with the average target implying a decline of more than 30% in the next 12 months. At the same time, investors are still wary about AI-linked names, and want to see more tangible results from the nascent technology. Earnings from Amazon.com Inc., Microsoft Corp., Meta Platforms Inc. and Apple Inc. were met with mixed reactions.“We cannot rationalize why Palantir is the most expensive name in software,” RBC analysts led by Rishi Jaluria wrote in a note last week. The stock trades at more than 100 times future earnings, while Oracle Corp. and Microsoft both trade at less than 30 times.RBC’s Jaluria, on the other hand, is skeptical that Palantir can keep up the pa