Palantir Technologies is a promising trade for the first time in a while, according to Private Advisor Group’s Guy Adami. The software company, known for its work with the government, surpassed analysts’ expectations in the fourth quarter , posting adjusted earnings per share of 4 cents on revenue of $509 million. Analysts called for earnings of 3 cents per share on revenues of $502 million, according to Refinitiv. It also marked the company’s first quarter of positive net income on a generally accepted accounting principles (GAAP) basis. Shares leapt more than 16% in extended trading. “In an environment where what they’re working on is seemingly front and center in everybody’s lexicon — I think Palantir for the first time in a long time, is actually tradeable,” Adami said Monday on CNBC’s ” Fast Money .” “You can be long on this name for the next couple weeks.” Adami added that he could see Palantir becoming “an M & A play.” “It would make perfect sense for a defense company, given the data they have and some of the military and government contracts they have,” Adami said in regard to a potential merger or acquisition of Palantir. To be sure, not all traders are as optimistic on Palantir. “This still trades at a fat multiple of sales, about seven times, and the profitability they speak of is not GAAP — it’s adjusted,” said Dan Nathan, principal of RiskReversal Advisors and “Fast Money” panelist. “I think it becomes a hard takeover candidate for a whole host of different companies that don’t have the sort of currency that can absorb that sort of valuation,” he added.
