Palantir lifts outlook after AI surge
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What is the main topic discussed in this episode?
Welcome to Seeking Alpha's Wall Street Breakfast, where we cover the top news for investors every morning. Good morning. Today is Tuesday, August 4th, and I'm your host, Kim Kahn, filling in for Julie Morgan, who's presenting Wall Street Lunch this week.
Why did Palantir raise its full-year guidance after Q2 results?
Palantir Technologies is rallying sharply after reporting Q2 results that top Wall Street expectations and raising its full-year outlook. Palantir posted adjusted EPS of 41 cents as revenues surged 93% year-over-year to $1.94 billion.
How did Palantir's Q2 financials beat analyst expectations?
U.S. revenue jumped 115%. Analysts had expected adjusted EPS of 34 on revenue of $1.81 billion. The company closed 220 deals worth at least $1 million during the quarter, including 98 valued at $5 million or more and 73 worth at least $10 million. 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.
What evidence did Palantir give for AI-driven demand and large deal wins?
For the full year, Palantir now expects revenue of $8.15 billion to $8.16 billion, up from prior guidance of $7.65 to $7.66. Analysts are expecting $7.73 billion. Seeking Alpha analyst Julian Lin said the company is now within striking distance of overtaking Microsoft 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 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 puts it, steam engines were used to create the next steam engine.
Why are Google executives calling AI capex a precursor to Recursive Self‑Improvement (RSI)?
And President Donald Trump criticized ExxonMobil and Chevron 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 company's 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. Now here's a look at what's trending on Seeking Alpha. SpaceX's $330 calls dominate options ahead of earnings and amid a short interest surge.
Missouri will decide on becoming the next state without income tax. And a Hershey biopic will hit the screens this fall, if you ever wondered about the woman and the man behind the kiss.
What did President Trump say about Exxon and Chevron's profits and gas prices?
In pre-market trading, stock index futures are higher, with Dow futures getting a lift from Caterpillar on solid earnings, while Palantir is helping the Nasdaq 100 futures. Treasure yields are slightly higher across the curve after the tumble in the previous session. On the economic calendar, at 10 a.m., we get the June factory orders figures. Also at 10 a.m., we get the latest job openings and labor turnover survey, or JOLTS. That's all for today's Wall Street Breakfast. Look for links for stories in the show notes section. Don't forget, these episodes will be up with transcriptions at ccalpha.com slash WSB. And for a full suite of news, analysis, ratings, and data on stocks and ETFs, go to SeekingAlpha.com slash subscriptions.
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Chapters
6 chapters
1
What is the main topic discussed in this episode?
0:04–0:17
2
Why did Palantir raise its full-year guidance after Q2 results?
0:17–0:32
3
How did Palantir's Q2 financials beat analyst expectations?
0:32–0:59
4
What evidence did Palantir give for AI-driven demand and large deal wins?
0:59–2:10
5
Why are Google executives calling AI capex a precursor to Recursive Self‑Improvement (RSI)?
2:10–2:59
6
What did President Trump say about Exxon and Chevron's profits and gas prices?
2:59–3:39