Your portfolios in brief
Founded in 2003, Palantir (PLTR) is a global company specializing in data analysis software. It is present in several countries and employs over 2,500 people worldwide. Palantir Technologies, a major player in the data analysis and artificial intelligence sector, is a regular topic of discussion among investors and analysts. This week, the company posted quarterly results that exceeded expectations.
-Highlights in 2023
Annual guidance: Palantir announced optimistic forecasts for the year, suggesting sustained revenue growth and margin expansion.
Sales for the quarter: The company reported sales of $608.4 million for the quarter, up 20% on the same period last year, surpassing Wall Street expectations of $602.4 million. This performance underlines the continuing strong demand for its data analytics and artificial intelligence services.
Forecasts for next quarter: Palantir has indicated that it expects to bring in between $612 million and $616 million in revenues during its first quarter, slightly below the $617 million anticipated by analysts. This forecast shows continued growth, albeit slightly below market expectations.
Adjusted earnings forecast: Palantir also raised its adjusted earnings forecast, demonstrating its confidence in its ability to generate increased profits.
Performance versus Wall Street expectations: Palantir's performance has consistently exceeded Wall Street expectations, thanks in particular to increased demand for its AI and data analytics solutions.
-Why is this a stock to watch ?
Palantir stands out for its ability to process and analyze vast data sets, a skill increasingly in demand in an information-driven world. With the expansion of artificial intelligence and the rise of cybersecurity, Palantir's services are essential for governments and businesses alike. What's more, its recent financial performance and optimistic forecasts are reinforcing investor interest. Palantir is up 26.4% year-to-date, which is also why the stock has climbed over 100% in the past year, as the euphoria around AI has propelled many tech stocks higher. Looking to the future, the company expects its commercial activity in the US to grow by at least 40% in 2024.
-Conclusion
At Pratte Portfolio Management, we firmly believe in Palantir's potential. Holding this stock in our portfolio has been a wise decision, and we look forward to seeing what the future holds for this innovative company. Palantir's ability to innovate in data processing and predictive analytics, combined with growing demand for its services, makes it a stock to watch closely in the years ahead. With an impressive performance in 2023 and solid growth prospects for 2024, Palantir represents an attractive investment opportunity in the technology and artificial intelligence sector.
Market Brief
Monday
Dow: The index fell 0.71% to close at 38,380.12 points.
NASDAQ: The index fell by 0.20% to close at 15,597.68 points.
S&P 500: The broad index lost 0.32% to close at 4,942.81 points.
The stock market session was marked by an adjustment in interest rate expectations. Jerome Powell, Chairman of the Federal Reserve, clarified in several public appearances that the central bank is unlikely to cut interest rates in March. This announcement influenced the markets, causing the main indices to fall.
- Bond rates and their influence on Wall Street
Rising rates on the bond market also played a key role in market performance. Yields on ten-year Treasury bonds climbed, reflecting reduced expectations of imminent monetary easing by the Fed. This contributed to the overall decline in indices, signalling investors' cautious reaction to the economic and monetary outlook.
- Stockss in brief
Meta (-3.28%): After a spectacular rise on Friday, Meta lost ground, closing at $459.41. The fluctuation reflects the market's reaction to the company's recent results and strategic adjustments.
Boeing (-1.31%): Boeing encountered difficulties, particularly with its 737 MAX models, which had a negative impact on its share price.
McDonald's (-3.73%): McDonald's saw its share price fall following mixed fourth-quarter results, affected in particular by calls for boycotts linked to the war in the Middle East.
Estée Lauder (+12.15%): Estée Lauder's announcement of 3,000 job cuts boosted its share price, despite lower sales in Asia, signalling a positive market reaction to its cost-cutting measures.
Tuesday
Dow: The index rose 0.37% to close at 38,521.36 points.
NASDAQ: The index gained 0.07% to close at 15,609.00 points.
S&P 500: The broad index gained 0.23% to close at 4,954.23 points.
This session saw a modest rebound on Wall Street, led by stocks other than the tech giants, which experienced profit-taking. The equally-weighted Russell 2000 and S&P 500 advanced more sharply, reflecting a diversification of gains beyond large caps. Healthcare and defensive stocks in particular did well, while the technology sector saw adjustments after significant gains since the start of the year.
- Stockss in brief
Palantir (30.80%): Palantir saw its shares soar after reporting better-than-expected results, underlining growing demand for artificial intelligence platforms across a variety of sectors.
Spirit AeroSystems (13.28%): the share price rose sharply after the company returned to profit despite the absence of forecasts for 2024 due to a lack of visibility on the 737 MAX.
New York Community Bancorp (-22.22%): The stock fell sharply, extending its losses after the publication of disappointing results, rekindling concerns about US regional banks.
Nvidia (-1.60%), AMD (-3.64%), and Broadcom (-1.65%): These semiconductor giants suffered profit-taking after a sharp rise since the start of the year, with Nvidia topping the list.
Disney (+2.73%) and Nike (+2.94%): These so-called defensive stocks shone, less sensitive to economic conditions and benefiting from renewed investor interest.
Eli Lilly (-0.17%): Despite a slight decline, Eli Lilly surprised analysts with its results, boosted in particular by its new treatment for overweight patients, Zepbound.
Wednesday
Dow: The index rose 0.40% to close at 38,677.36 points, contrary to a previously reported decline.
NASDAQ: The index gained 0.95% to close at 15,756.64 points, showing a stronger performance than initially indicated.
S&P 500: The broad index gained 0.82% to close at 4995.06 points, surpassing the previously reported decline.
Wednesday's session proved positive for the indices, which posted significant gains, supported by the technology sector, which contributed significantly to the rise. The market's performance reflects investors' optimism in the face of corporate results and economic projections, despite the adjustments needed to reflect the indices' exact closing data.
- Stockss in brief
Ford (+6.03%): Ford surprised with better-than-expected quarterly results, despite a net loss due to exceptional items. The company also announced ambitious targets for the current year, aiming for an operating profit of between $10 and $12 billion.
Chipotle Mexican Grill (+7.12%): The fast-food chain saw its share price soar after reporting an 8.4% increase in like-for-like sales, beating expectations with fourth-quarter sales of $2.52 billion.
Uber (+0.28%): Despite a hesitant start to the day, Uber closed slightly higher. The company reported fourth-quarter net income of $1.4 billion, boosted by the revaluation of equity investments, with sales up 15% year-on-year.
Roblox (+10.25%): The video game platform recorded a record number of bookings for its services in the fourth quarter, with the number of daily users up 22% year-on-year.
Palantir (+7.96%): Specializing in intelligence and the use of artificial intelligence, Palantir saw its shares rise after announcing a 20% increase in fourth-quarter sales, exceeding expectations.
New York Times (-7.34%): The stock fell following the announcement of a drop in advertising revenues, despite an increase in web subscribers.
NYCB (+7.14%): After a mid-session drop of 14%, due to a Moody's downgrade of its credit rating, NYCB finally ended higher, attracting speculators.
Thursday
Dow: The index rose by 0.13% to close at 38,726.33 points.
NASDAQ: The index gained 0.24% to close at 15,793.71 points.
S&P 500: The broad index gained 0.06% to close at 4,997.91 points.
The S&P 500's performance, despite an attempt to break through the 5,000-point barrier, shows that investors are cautious about the economic outlook and monetary policies.
Corporate results continue to be a key driver for the market, with outstanding performances from the likes of Disney and Arm Holding. However, the concentration of leadership in certain stocks raises questions about the sustainability of the market's recovery.
Rising bond yields and the Federal Reserve's comments on interest rates add to the uncertainty, influencing market dynamics. Investors remain attentive to upcoming earnings reports and economic indicators to guide their investment decisions in a fluctuating market environment.
- Stockss in brief
Disney (11.5%): Disney shares jumped 11.5%, after beating quarterly earnings estimates and raising guidance. This remarkable performance reflects the company's solidity and continued growth potential.
Arm Holding (47.9%): Arm Holding saw its share price soar by 47.9%, after reporting better-than-expected earnings and providing optimistic profit forecasts. This spectacular rise highlights the strength of the semiconductor sector and its growing importance in the digital economy.
Confluent (34.09%): Confluent saw its share price rise by 34.09% thanks to a 26% increase in fourth-quarter sales and the achievement of a positive operating margin for the first time.
Paypal (-11.24%): Paypal suffered a fall of 11.24% despite above-expected quarterly results. Earnings forecasts for 2024 disappointed investors, leading to a significant fall in its share price.
Mattel (0.32%): Mattel edged up 0.32%, buoyed by higher quarterly results. The Barbie brand shone particularly brightly, with a 27% increase in sales, driven by the success of the eponymous film.
Friday
S&P 500: The index gained 0.13%, four points above this psychological threshold. The S&P 500 opened just above the symbolic 5,000-point mark for the first time on the New York Stock Exchange on Friday, marking a significant milestone.
Dow: Slightly down by 0.04% at the start of the session.
NASDAQ: Dominated by technology stocks, it gained 0.36% at the opening.
Conclusion
The S&P 500's attempt to break through the 5,000-point barrier illustrates the ambivalence of the market, torn between enthusiasm for corporate results and caution in the face of uncertain economic prospects and monetary policies. Rising bond yields and the Fed's comments on interest rates continue to add to this uncertainty, underlining the importance for investors to remain attentive to upcoming earnings reports and economic indicators.
In conclusion, the week demonstrated the ability of markets to recover in the face of challenges, supported by strong corporate performances and strategic adjustments. However, the environment remains complex, with persistent uncertainties requiring continued vigilance. Investors will need to maintain a balanced approach, carefully weighing growth opportunities against potential risks, in an ever-changing market environment.
