Palantir (PLTR) stepped into the earnings confessional Monday after the close of U.S. markets. (This article was written in advance of the report.) That report represented a test for the high-flying technology stock.
That event also brings opportunity with single-stock ETFs. Those include the Direxion Daily PLTR Bull 2X Shares (PLTU) and the Direxion Daily PLTR Bear 1X Shares (PLTD). The bullish PLTU attempts to deliver double the daily price movement of Palantir shares. PLTD is an inverse — though not levered — play on the stock.
Obviously, traders need to digest the company’s earnings update and forward-looking guidance, if any is offered, before deciding on whether PLTU or PLTD is the way to go. Leading up to the report, Palantir sported a market capitalization north of $475 billion. Some critics say that’s far too high given the company’s revenue levels. That could imply that if there’s any whiff of disappointment on the top or bottom lines, the bearish PLTD could be in focus in the days ahead.
PLTU Could Be in Play, Too
On the other hand, Palantir’s scorching run — the stock is up more than 172% YTD — confirms investors have been willing to pay up to get involved with government contractor’s shares. That indicates they’re not sensitive to valuation concerns. Should that sentiment continue post-earnings, it could augur well for the bullish PLTU.
“On the bullish side, no company looks like a true competitor for Palantir’s operating system and ontological framework,” noted Morningstar analyst Mark Giarelli. “Continued US commercial penetration and more potential penetration in Europe are worth watching.”
Palantir’s deep ties to AI could also be catalysts for PLTU following the earnings report. Management could provide some commentary to that effect. Arguably, the company is one of the most AI-centric outside the Magnificent Seven.
“Palantir differentiates itself as the only AI company with a framework that organizes disparate datasets and facilitates optimized decision-making. This machine-learning framework that identifies opaque yet significant relationships in data and translates,” added Giarelli.
Another potential catalyst for Palantir shares and PLTU following the earnings report could be further evidence that the company’s already-solid balance sheet is gaining strength. That could defray some of the valuation concerns.
“We view Palantir’s financial position as healthy and improving. As of June, the firm had approximately $900 million in cash and $5 billion in marketable securities (mostly US Treasury securities) and no debt. Its liquidity position improved by $700 million thus far in 2025,” concluded Giarelli.
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