Palantir Shares Surge on S&P 500 Inclusion

Updated – September 9, 2024 7:59 AM EDT
Palantir (NYSE:PLTR) shares surged more than 8% in premarket trading on Monday after S&P Dow Jones Indices announced the company’s addition to the S&P 500 index, effective prior to the opening of trading on Monday, September 23, coinciding with the quarterly rebalance.

The data analytics software maker will replace American Airlines in the S&P 500. Following this news, released Friday, Palantir shares jumped, trading up 8.24% at $32.82, adding to a previous week’s gain of 0.56%, which saw the stock close at $30.33.

Palantir debuted on the New York Stock Exchange in 2020 and reported its first profits in the fourth quarter of 2022. In the second quarter, the company’s revenue grew by 27% year-over-year and 7% quarter-over-quarter to $678 million, with a net income of $135.6 million, up from $27.9 million a year earlier.

PLTR’s annual revenue growth has increased for four consecutive quarters. To qualify for the S&P 500, a company must report a profit in its latest quarter and show cumulative profits over the last four quarters.

During a conference call in May, Palantir CEO Alex Carp noted the importance of profitability, stating that it would strengthen the company’s position for S&P qualification.

In related news, Dell Technologies (NYSE:DELL) was also added to the S&P 500, returning after being public again in 2018. Dell had previously been part of the index from 1996 to 2013, with its stock up more than 5% in premarket on Monday.