Position for Palantir's Q1 2025 Report: Leveraged and Inverse ETF Trading Approaches

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Palantir Technologies Inc.’s (PLTR) Q1 2025 earnings report (May 5th after market close) comes as the data analytics firm builds on its strong Q4 performance. Traders are watching for commercial customer growth, government contract gains, and progress with enterprise AI features. After beating expectations last quarter and guiding for 31% revenue growth in 2025, Palantir faces heightened expectations heading into this report.

The market is closely monitoring Palantir's expansion into commercial markets. This business shift and the company's ability to grow average contract values will likely drive analyst questions during the earnings call.

PLTR stock often makes dramatic moves after earnings announcements. Traders looking to capture this earnings volatility can use Direxion's Single Stock Daily Leveraged & Inverse ETFs as short-term trading tools.

Q1 2025 Earnings Outlook

Wall Street expects Palantir to report earnings of about $0.08 per share for Q1 2025. Last quarter, the company posted adjusted earnings of $0.14 per share, well above the $0.11 consensus estimate.

Revenue will be top priority for investors. Palantir's Q4 2024 revenue hit $828 million, beating analyst expectations by $53 million. Management guided for Q1 2025 revenue between $858-$862 million and set full-year 2025 targets of $3.74-$3.76 billion. Traders will watch whether these projections hold or if management adjusts their outlook.

Recent Quarterly Performance

Palantir delivered strong results in Q4 2024 with total revenue growing 36% year-over-year. U.S. business led the way with 52% growth, reaching $558 million. U.S. commercial revenue jumped 64% to $214 million, while U.S. government revenue grew 45% to $343 million.

Deal activity was robust, with 129 contracts worth at least $1 million each, including 58 deals over $5 million and 32 exceeding $10 million. Following these results, PLTR stock moved sharply. The stock has established a pattern of double-digit percentage moves after earnings reports, attracting traders who specialize in volatility plays.

Wall Street Outlook

Analysts remain divided on Palantir's prospects. The stock's premium valuation creates significant expectations for continued growth. For context, Palantir trades at multiples far above most software companies, reflecting aggressive growth assumptions already built into the stock.

For Q1, investors will focus on whether Palantir can sustain its commercial momentum. Management previously projected U.S. commercial revenue would grow at least 54% to reach $1.08 billion in 2025. Any signs of slowing growth could prompt significant selling, while beating these targets might fuel further gains.

Trading Palantir's Earnings With ETFs

PLTR's consistent pattern of big post-earnings moves creates clear trading opportunities. Direxion's Single Stock Daily Leveraged & Inverse ETFs offer ways to trade these moves without needing margin accounts or short-selling capabilities.

These ETF products use derivatives to provide targeted exposure for short-term trades around major events such as quarterly reports.

Bullish Strategy: PLTU

Direxion Daily PLTR Bull 2X Shares (PLTU) seeks leveraged exposure to potential Palantir daily performance. PLTU seeks 200%, before fees and expenses, of the daily return of PLTR.

• Seeks 200% of PLTR's daily performance, before fees and expenses
  • If Palantir rises 1%, PLTU seeks to gain 2% (before fees)
  • If Palantir falls 1%, PLTU would decline 2% (before fees)
• Appeals to traders who expect strong commercial growth figures
• Trading typically spikes near earnings dates
• Typically sees over 3.3 million shares traded daily
• Designed for traders who stay on top of their positions

Bearish Strategy: PLTD

Direxion Daily PLTR Bear 1X Shares (PLTD) provides inverse exposure without short selling*. This makes PLTD valuable for retirement account traders who can't short stocks in IRAs or 401(k)s.

• Seeks inverse (-1x) daily performance of PLTR, before fees and expenses
  • If Palantir drops 1%, PLTD seeks to gain 1% (before fees)
  • If Palantir rises 1%, PLTD would decline 1% (before fees)
• Good fit for traders concerned about Palantir's high valuation multiples
• Allows retirement account traders to express negative views on the stock
• Trades over 1.3 million shares daily
• Can help offset exposure for investors with existing Palantir positions

Both PLTU and PLTD reset their exposure daily and work best for short-term trades rather than long-term investing. These ETFs require regular oversight and are intended for traders who understand how daily rebalancing affects returns over time.

*Short-selling is a trading strategy where investors borrow shares and sell them, hoping the stock price will fall.

Investing in the funds involves a high degree of risk. Unlike traditional ETFs, or even other leveraged and/or inverse ETFs, these leveraged and/or inverse single-stock ETFs track the price of a single stack rather than an index, eliminating the benefits of diversification. Leveraged and inverse ETFs pursue daily leveraged investment objectives, which means they are riskier than alternatives which do not use leverage. They seek daily goals and should not be expected to track the underlying stock's performance over periods /anger than one day. They are not suitable for all investors and should be utilized only by investors who understand leverage risk and who actively manage their investments. The Funds will Jose money if the underlying stock's performance is flat, and it is possible that the Bull Fund will Jose money even if the underlying stock's performance increases. and the Bear Fund will lose money even if the underlying stock's performance decreases, over a period longer than a single day. Investing in the Funds is not equivalent to investing directly in PLTR.

An investor should carefully consider a Fund’s investment objective, risks, charges, and expenses before investing. A Fund’s prospectus and summary prospectus contain this and other information about the Direxion Shares. To obtain a Fund’s prospectus and summary prospectus call 866-476-7523 or visit our website at direxion.com. A Fund’s prospectus and summary prospectus should be read carefully before investing.

The Funds have derived all disclosures contained in this document regarding Palantir Technologies Inc. from publicly available documents. In connection with the offering of each Fund’s securities, neither the Funds, the Trust, nor the Adviser or any of its respective affiliates has participated in the preparation of such documents. Neither the Funds, the Trust nor the Adviser or any of its respective affiliates makes any representation that such publicly available documents or any other publicly available information regarding Palantir Technologies Inc. is accurate or complete. Furthermore, the Funds cannot give any assurance that all events occurring prior to the date hereof (including events that would affect the accuracy or completeness of the publicly available documents described above) that would affect the trading price of Palantir Technologies Inc. have been publicly disclosed. Subsequent disclosure of any such events or the disclosure of or failure to disclose material future events concerning Palantir Technologies Inc. could affect the value of a Fund’s investments with respect to Palantir Technologies Inc. and therefore the value of the Funds.

Direxion Shares Risks – An investment in a Fund involves risk, including the possible loss of principal. Each Fund is non-diversified and includes risks associated with a Fund concentrating its investments in a particular security, industry, sector, or geographic region which can result in increased volatility. A Fund’s investments in derivatives such as futures contracts and swaps may pose risks in addition to, and greater than, those associated with directly investing in securities or other investments, including imperfect correlations with underlying investments or the Fund’s other portfolio holdings, higher price volatility and lack of availability. As a result, the value of an investment in a Fund may change quickly and without warning.

Leverage Risk – The Bull Fund obtains investment exposure in excess of its net assets by utilizing leverage and may lose more money in market conditions that are adverse to its investment objective than a fund that does not utilize leverage. A total loss may occur in a single day. Leverage will also have the effect of magnifying any differences in the Fund’s correlation with PLTR and may increase the volatility of the Bull Fund.

Daily Correlation Risk – A number of factors may affect the Bull Fund’s ability to achieve a high degree of correlation with PLTR and therefore achieve its daily leveraged investment objective. The Bull Fund’s exposure to PLTR is impacted by PLTR’s movement. Because of this, it is unlikely that the Bull Fund will be perfectly exposed to PLTR at the end of each day. The possibility of the Bull Fund being materially over- or under-exposed to PLTR increases on days when PLTR is volatile near the close of the trading day.

Daily Inverse Correlation Risk – A number of factors may affect the Bear Fund’s ability to achieve a high degree of inverse correlation with PLTR and therefore achieve its daily inverse investment objective. The Bear Fund’s exposure to PLTR is impacted by PLTR’s movement. Because of this, it is unlikely that the Bear Fund will be perfectly exposed to PLTR at the end of each day. The possibility of the Bear Fund being materially over- or under-exposed to PLTR increases on days when PLTR is volatile near the close of the trading day.

Palantir Technologies Inc. Investing Risk – Palantir Technologies Inc. faces risks associated with: a limited number of customer accounts for a substantial portion of its revenue; the development and deployment of new technologies; reliance on or capability with third-party products and services; the ability to hire, retain, train and motivate qualified personnel and senior management; sales and operations; intense competition; among other risks.

Information Technology Sector Risk — The value of stocks of information technology companies and companies that rely heavily on technology is particularly vulnerable to rapid changes in technology product cycles, rapid product obsolescence, government regulation, and competition, both domestically and internationally, including competition from competitors with lower production cost.

Additional risks of each Fund include Effects of Compounding and Market Volatility Risk, Derivatives Risk, Counterparty Risk, Rebalancing Risk, Intra-Day Investment Risk, Industry Concentration Risk, Market Risk, Indirect Investment Risk, and Cash Transaction Risk. Additionally, for the Direxion Daily PLTR Bear 1X Shares, Shorting or Inverse Risk. Please see the summary and full prospectuses for a more complete description of these and other risks of a Fund.

Distributor: ALPS Distributors, Inc.

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