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Palantir Technologies (PLTR) reports Q2 2025 earnings on August 4th after market close, with traders watching for signs the AI and data analytics leader can maintain its torrid growth pace. The controversial defense contractor turned commercial software powerhouse has defied skeptics with massive gains.
PLTR shares have skyrocketed more than 480% over the past year, dwarfing the S&P 500's 17% return. This explosive performance reflects growing adoption of the company's AI platforms across government and commercial sectors, though valuation concerns persist.
For active traders looking to play Palantir's typically volatile earnings moves, Direxion's Single Stock Daily Leveraged & Inverse ETFs, launched in December 2024, provide tactical tools to trade the data analytics leader's price swings without traditional margin requirements.
Q2 Earnings Expectations
Wall Street expects Palantir to report $0.08 per share in Q2 earnings, up a stunning 167% from the $0.03 posted in the same quarter last year. This growth reflects accelerating AI platform adoption and expanding commercial relationships.
The company has a mixed recent track record, beating estimates once while missing three times over the past four quarters. In Q1, Palantir reported $0.13 per share, crushing the $0.05 estimate, though shares still tumbled 12% the next day on concerns about international sales weakness.
For fiscal 2025, analysts project earnings of $0.37 per share, representing explosive 363% growth from fiscal 2024's $0.08. This remarkable acceleration shows Wall Street's belief in Palantir's AI-driven transformation.
Recent Rally and Analyst Caution
Palantir trades around $158.80, just below its recent all-time high. The stock has more than doubled year-to-date, driven by AI enthusiasm and a recent partnership with Accenture Federal Services to expand government AI deployments.
Analyst sentiment remains notably cautious despite the rally, with 20 analysts covering the stock. The breakdown shows just 3 "Strong Buy" ratings, 12 "Hold," 1 "Moderate Sell," and 4 "Strong Sell" recommendations. The average price target of $106.12 actually sits 33% below current levels, highlighting Wall Street's valuation concerns.
Market observers note several positives, including the strategic Accenture partnership that validates Palantir's AI platforms. However, the 10% decline in international sales last quarter and sky-high valuation multiples temper enthusiasm.
Key Factors for Q2 Results
Several elements will drive the stock's reaction when Palantir reports:
- Commercial Growth: U.S. commercial revenue grew 55% in Q1—investors need this momentum to continue or accelerate.
- International Recovery: Any signs of stabilization in the weak international segment would ease a major concern.
- Customer Additions: New enterprise wins and expansions validate the AI platform strategy.
- Government Traction: Updates on federal AI deployments through the Accenture partnership matter for long-term growth.
- Profitability Progress: Margin expansion amid rapid growth shows operating leverage in the model.
- Forward Guidance: Management's outlook for AI-driven growth will set the tone for the stock's next move.
Trading PLTR Earnings With Leveraged and Inverse ETFs
PLTR routinely sees increased volatility surrounding earnings, creating significant opportunities for positioned traders. Direxion's Single Stock Daily Leveraged & Inverse ETFs let traders amplify or hedge PLTR's price action.
Bullish Trades: PLTU
Direxion Daily PLTR Bull 2X Shares (PLTU) allows traders to attempt to double their exposure to Palantir. PLTU seeks daily investment results, before fees and expenses, of 200% of the performance of PLTR.
- Targets 200% of PLTR's daily performance
- When Palantir rises 1%, PLTU aims for a 2% gain (before fees)
- When Palantir falls 1%, PLTU typically drops 2% (before fees)
- Perfect for traders expecting blowout commercial results or strong guidance
- AI stocks often see extreme moves on quarterly reports
- Average daily volume: 3.8 million shares
- Built for active traders monitoring positions throughout the day
Bearish Trades: PLTD
Direxion Daily PLTR Bear 1X Shares (PLTD) provides inverse exposure to Palantir without requiring short-selling*. This feature helps traders in retirement accounts where IRA and 401(k) rules prohibit traditional shorting. PLTD seeks daily investment results, before fees and expenses, of the inverse performance of PLTR.
- Delivers inverse (-1X) daily performance versus PLTR
- When Palantir drops 1%, PLTD aims for a 1% gain (before fees)
- When Palantir rises 1%, PLTD typically falls 1% (before fees)
- Valuable for traders worried about valuation concerns or international weakness persisting
- Allows retirement account holders to make bearish trades on PLTR
- Average daily volume: 7.2 million shares
- Functions as portfolio insurance given PLTR's extreme volatility
Both PLTU and PLTD reset their exposure daily and work best as short-term trading tools rather than buy-and-hold investments. These products require active oversight and are designed for traders who understand leverage and inverse effects and daily rebalancing dynamics.
*Short-selling is a trading strategy where investors borrow shares and sell them, hoping the stock price will fall.
To learn more about all Direxion's Single Stock Leveraged and Inverse ETFS, Click Here
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 stock 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 longer 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 lose money if the underlying stock’s performance is flat, and it is possible that the Bull Fund will lose 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.
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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