Wall Street drifts as a busy week rolls on
Solve the daily Crossword
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Yahoo
14 minutes ago
- Yahoo
Wall Street thinks the party for Palantir can continue even after a wild rally in 2025 — but there's one key risk
Palantir is the top-performing stock in the S&P 500 this year, and Wall Street is upbeat about what's ahead. Palantir has been on a tear, climbing 113% since the start of the year. A lofty valuation is the main risk analysts are eyeing heading into second-quarter earnings. Wall Street thinks the Palantir party can keep going. The stock is already up by about 113% this year as it heads into its second-quarter earnings report after the bell on Monday, but analysts see reasons to believe the gains can pile up further. The Alex Karp-led software giant is benefiting from a slew of government contracts, roaring AI demand, and a cultlike following among retail investors in 2025. Shares of the company have soared from around $75 a share at the start of 2025 to above $160 on Monday. That ascent has made Palantir the best-performing stock in the S&P 500 this year. Analysts are bullish about Palantir's second-quarter earnings. They estimate the tech giant will report $939.3 million in revenue for the three-month period, up around 38% year over year. Here are some of the reasons they see the growth story continuing — and one key risk. 1. The AI trade is still running hot Palantir will likely keep up growth in its commercial segment, thanks to the ongoing hype surrounding AI. Accelerating AI adoption is creating a greater need to integrate data, which is good news for the stock, analysts at Mizuho wrote in a note. The bank said it conducted checks on Palantir's enterprise inbound activity, which gave it confidence that the company would be able to beat its commercial growth guidance in 2025. Palantir expects the US commercial side of its business to grow 68% for the year. "PLTR's recent execution and momentum is stunning, including material upward revisions across its commercial and government segments that we very much underestimated," Mizuho analysts wrote. Analysts at UBS said they also conducted checks on Palantir's enterprise businesses, and lifted their estimates for the company's revenue growth from 31% to 38% for the year. "We see potential tailwinds from the increasing adoption of AI across enterprise," Citi analysts wrote, adding that its checks and its conversation with Palantir's chief finance officer were also positive. Government contracts A large part of Palantir's growth story has been fueled by its contracts with the federal government. In April, the software company secured a $30 million deal with the US Immigration and Customs Enforcement for software to monitor visas and track deportations. In May, the firm teamed up with Fannie Mae, and said it would provide AI tools to support the government-sponsored mortgage financier's Crime Detection Unit. It also secured a $795 million contract with the Department of Defense's AI arm, and last week, locked a deal to help streamline the US Army for up to $10 billion for the next decade. The deal consolidates 75 existing contracts into a single agreement. "We believe this deal represents an additional tailwind for PLTR with AI initiatives across the US government accelerating with AI a strategic focus on the federal front and Palantir in the sweet spot to benefit from a tidal wave of federal spending on AI," analysts at Wedbush Securities wrote last week, calling Palantir one of the top tech stocks to own in 2025. "We remain positive on the public sector pipeline, which appears durable given ongoing geopolitical instability. Net, we believe PLTR will likely be able to continue growing its Government revenue >40% Y/Y over at least the near-term," Mizuho said. "We continue to view Palantir as well positioned to continue to deliver best-in-class growth given the secular trend towards enterprise AI adoption; the continued push for efficiency and technology adoption in the US government; and adoption of Operation Warp Speed among new defense entrants, traditional defense companies, and the broader manufacturing industry," analyst at Goldman Sachs wrote in a note following Palantir's first-quarter earnings report in May. High bar But there's one risk Wall Street is eyeing: the valuation is at eye-watering levels. As of Monday afternoon, the trailing 12-month price-to-earnings ratio was above 690x. Despite a bullish short-term outlook, Goldman Sachs, UBS, and Mizuho are among those on Wall Street who rated Palantir as "neutral" headed into its second-quarter earnings. Analysts at Citi, meanwhile, rated the stock as "Neutral/High Risk." "We maintain our Neutral/High Risk rating on the stock on valuation concerns and our view that second derivative/revision trends could moderate limiting upside," Citi added in a note. "That said, we are equally stunned by the multiple that PLTR has attained, which places its valuation dramatically above anything else in software," Mizuho analysts said, adding they would "continue to worry" that the stock could see a reversion sometime in the next several quarters. "We continue to be very impressed by the fundamental story (we have been since our launch) but valuation remains our key hurdle, we remain Neutral rated," UBS said. Read the original article on Business Insider Sign in to access your portfolio
Economic Times
an hour ago
- Economic Times
US stocks post biggest daily percentage gains since May 27 in rebound from Friday selloff
U.S. stock indexes surged, marking the largest daily percentage increase since May 27, fueled by bargain hunting and increased expectations for a September interest rate cut following weak jobs data. Tesla's shares saw a rise after Elon Musk was granted a substantial number of shares. Tired of too many ads? Remove Ads Tired of too many ads? Remove Ads Tired of too many ads? Remove Ads All three major U.S. stock indexes scored their biggest daily percentage increases since May 27 on Monday as investors sought bargains after the previous session's selloff and ramped up bets for a September interest rate cut after Friday's weaker-than-expected jobs data. Tesla shares rose 2.2% after the electric vehicle maker granted CEO Elon Musk 96 million shares worth about $29 selloff followed bleak July jobs data that was accompanied by steep downward revisions for May and June."Today is just a little bit of dip-buying. It does show a pretty healthy sign of folks out there looking for an opportunity to get in," said Mike Dickson, head of research and quantitative strategies at Horizon Investments in Charlotte, North Carolina."It's a little concerning in the sense the labor market ... definitely appears to be weaker than people expected. A bit of an offset to that is the renewed rate cut expectations. There's a high probability we're getting a September cut."Odds for a September rate cut now stand at about 84%, according to CME Fedwatch. Market participants see at least two quarter-point cuts by the end of this S&P 500 and Nasdaq had hit a string of record highs Dow Jones Industrial Average rose 585.06 points, or 1.34%, to 44,173.64, the S&P 500 gained 91.93 points, or 1.47%, at 6,329.94 and the Nasdaq Composite climbed 403.45 points, or 1.95%, to 21, were still digesting U.S. President Donald Trump's firing of Bureau of Labor Statistics Commissioner Erika McEntarfer on Friday as he accused her of faking the weak jobs on Friday, Fed Governor Adriana Kugler unexpectedly resigned, which could open the door for changes from Trump. Trump has been pushing the Fed to cut the trade front, Trump said on Monday he will substantially raise tariffs on goods from India over its Russian oil purchases, while New Delhi said it would take measures to safeguard its interests and called its targeting by the U.S. president "unjustified."Second-quarter U.S. earnings season is winding down, but investors still look forward to reports this week from companies like Walt rising shares on Monday, Spotify gained 5% as the music streaming platform announced plans to raise the monthly price of its premium individual subscription in select markets from September. Joby Aviation jumped 18.8% after the company said it will acquire helicopter ride-share company Blade Air Mobility's passenger business for up to $125 million. Blade Air shares rose 17.2%.Among the day's decliners, Class A shares of Warren Buffett 's Berkshire Hathaway fell 2.7% as investors took in a $3.8 billion write-down and a dip in quarterly operating profit that the firm disclosed on issues outnumbered decliners by a 4.48-to-1 ratio on the NYSE. There were 136 new highs and 51 new lows on the the Nasdaq, 3,487 stocks rose and 1,090 fell as advancers outnumbered decliners by a 3.2-to-1 on U.S. exchanges was 15.05 billion shares, compared with the 18.37 billion average for the full session over the last 20 trading days.
Mint
an hour ago
- Mint
Global market news: US stock market logs biggest percentage gain since May 27; Tesla, NVIDIA, Microsoft shares rise
Global market news: On Monday, all three key benchmark indices of the US stock market — Dow Jones, S&P 500, and NASDAQ — registered their biggest daily percentage increases since May 27, as investors sought bargains after the previous session's selloff and ramped up bets for a September interest rate cut after Friday's weaker-than-expected jobs data. The Dow Jones Industrial Average rallied 585.06 points, or 1.34%, to 44,173.64, while the S&P 500 gained 91.93 points, or 1.47%, at 6,329.94. The Nasdaq Composite closed 403.45 points, or 1.95%, higher at 21,053.58. Among US majors, Tesla share price rose 2.2%, Nvidia stock price surged 3.62%, Microsoft shares rallied 2.20% and Advanced Micro Devices stock gained 2.99%. Joby Aviation shares jumped 18.8 and Blade Air stock price spiked 17.2%. Berkshire Hathaway shares fell 2.7%. However, Berkshire Hathaway share price fell 2.7% as investors took in a $3.8 billion write-down and a dip in quarterly operating profit that the firm disclosed on Saturday. Advancing issues outnumbered decliners by a 4.48-to-1 ratio on the NYSE. There were 136 new highs and 51 new lows on the NYSE. "Today is just a little bit of dip-buying. It does show a pretty healthy sign of folks out there looking for an opportunity to get in," said Mike Dickson, head of research and quantitative strategies at Horizon Investments in Charlotte, North Carolina. "It's a little concerning in the sense the labor market ... definitely appears to be weaker than people expected. A bit of an offset to that is the renewed rate cut expectations. There's a high probability we're getting a September cut." On the Nasdaq, 3,487 stocks rose and 1,090 fell as advancers outnumbered decliners by a 3.2-to-1 ratio. Volume on U.S. exchanges was 15.05 billion shares, compared with the 18.37 billion average for the full session over the last 20 trading days. (With inputs from Reuters) Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.
