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Palantir Stages Reversal Following 'Phenomenal' Earnings Report, Says Roger Monteforte

The volatile price action in Palantir Technologies Inc (NYSE: PLTR) was less about the Bitcoin (CRYPTO:BTC) news and more about the company's fantastic earnings report, founder and CEO of Forte Capital Group Roger Monteforte said Tuesday on CNBC's "Closing...

05/11/2021 19:11

The volatile price action in Palantir Technologies Inc (NYSE:PLTR) was less about the Bitcoin (CRYPTO:BTC) news and more about the company's fantastic earnings report, founder and CEO of Forte Capital Group Roger Monteforte said Tuesday on CNBC's "Closing Bell."

What Happened: Palantir reported first-quarter financial results on Tuesday. The company reported earnings of 4 cents per share, which was in line with the consensus estimate. Revenue grew 49% year-over-year to $341 million, which beat the estimate of $332.23 million. Palantir also reaffirmed its guidance for annual revenue growth of 30% or greater through 2025. 

On the conference call, the company said it would begin accepting Bitcoin as payment from customers. Furthermore, Palantir said it's considering investing in Bitcoin or other cryptocurrencies. 

See Also: Palantir To Accept Bitcoin As Payment Option: What You Need To Know

Monteforte's Take: The trend so far during this earnings season has been to sell the news on growth stocks, Monteforte told CNBC, adding that such explains the initial sell-off on the earnings release. Investors then came to their senses and realized that the quarter was "phenomenal," he said. 

Monteforte bought more shares of Palantir in the premarket when the stock was trading below $17 per share. The quarter highlights the "scalability and profitability" of the company, he said.

The most important number on the report was the adjusted free cash flow, Monteforte said. The consensus estimate was for a loss of $28 million, but Palantir reported adjusted free cash flow of $151 million, he said, adding that the number was a "massive beat."

Price Action: Palantir traded down to about $16.50 in premarket trading before staging a reversal that saw the stock close up 9.42% at $20.21.