Palantir Shares Surge Nearly 9% After Raising Revenue Forecast on Strong AI Demand

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Palantir Technologies (PLTR.O) shares jumped nearly 9% in early trading Tuesday after the company raised its annual revenue forecast for the second time this year. The data analytics and defense software firm is benefiting from strong demand for its AI-driven services across governments and enterprises.

Palantir’s stock has doubled this year and climbed more than 600% over the past three years, making it the top performer on the S&P 500 through the last close. Jacob Falkencrone, Saxo’s global head of investment strategy, said Palantir is evolving from a government vendor into an essential partner for enterprises in the AI revolution.

Wedbush analysts project Palantir could reach a $1 trillion market capitalization within the next few years, up from $379.14 billion as of the latest close. Co-founded by Peter Thiel in 2003 and publicly listed in 2020, Palantir has secured multiple U.S. government contracts this year, including a $30 million deal with Immigration and Customs Enforcement.

The Trump administration’s renewed focus on national security has fueled growth, with the U.S. Army indicating it may spend up to $10 billion on Palantir’s services over the next decade. Sales to the U.S. government surged 53% in Q2 to $426 million, accounting for over 42% of Palantir’s roughly $1 billion total revenue for the quarter.

Valuation Concerns:
Despite its rapid growth, some analysts warn Palantir’s valuation is extremely high, trading at more than 200 times 12-month forward earnings—far above AI peer Nvidia’s multiple of 34.81. Morningstar analysts noted the company’s robust competitive advantages but cautioned that the valuation is increasingly difficult to justify.

Palantir also expects higher expenses in Q3 due to seasonal hiring amid competition for AI talent from major tech firms. Nevertheless, at least eleven brokerages raised their price targets on the stock following the earnings release.

CFTC Moves to Permit Spot Crypto Trading on Registered Futures Exchanges

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The U.S. Commodity Futures Trading Commission (CFTC) announced plans to launch an initiative allowing spot trading of crypto asset contracts on futures exchanges registered with the agency. This effort aims to further integrate digital assets into traditional finance and could accelerate broader crypto adoption.

Acting Chair Caroline Pham explained that the CFTC will work alongside the Securities and Exchange Commission’s Project Crypto to enable federal-level trading of digital assets. The agency has opened a public comment period to gather input on how to designate spot crypto asset contracts for trading on regulated markets.

Industry leaders welcomed the move as a significant step toward aligning crypto markets with conventional financial standards. Saad Ahmed, head of Asia Pacific at Gemini, said the initiative could expand institutional and sophisticated investor participation worldwide.

The development follows several crypto-friendly actions by the Trump administration, including bills like the GENIUS Act and CLARITY Act aimed at creating tailored regulatory frameworks. Shortly after taking office, President Trump established a crypto working group tasked with recommending new regulations, fulfilling his campaign pledge to overhaul U.S. crypto policy.

Last week, the administration released a landmark report urging the SEC to implement specific rules for digital assets and encouraged the CFTC to use its existing powers to “immediately enable” federal digital asset trading. Trump, who branded himself the “crypto president” during his campaign, received substantial financial support from the crypto industry and Republican congressional candidates.

SEC Chair Paul Atkins recently outlined multiple pro-crypto initiatives, including developing clearer guidelines on when a crypto token qualifies as a security and proposals for disclosure and exemption rules.

The dual approach by the CFTC and SEC marks a victory for the crypto sector, which has long sought tailored regulations. It may also benefit exchanges, which have dominated spot trading by operating in a regulatory gray area.

Joseph Edwards, head of research at Enigma Securities, expressed optimism that a wider range of digital assets beyond Bitcoin and Ethereum could establish themselves on U.S. trading platforms over the next two years, aided by initiatives like this.

However, the success of these initiatives hinges on resolving fundamental questions about whether digital assets should be regulated as commodities or securities—a longstanding issue for U.S. regulators.

Neither the CFTC nor the SEC has provided further comments yet.

This shift under the Trump administration sharply contrasts with the Biden administration’s regulatory crackdown, which has included lawsuits against major exchanges such as Coinbase and Binance for alleged violations of U.S. laws. The Trump-era SEC has reportedly dropped these cases.

Zebra Technologies to Acquire Elo Touch Solutions for $1.3 Billion, Raises Full-Year Forecasts

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Barcode scanner and handheld device maker Zebra Technologies (ZBRA.O) announced a $1.3 billion all-cash deal to acquire Elo Touch Solutions, a touchscreen system maker, as it expands its retail-focused offerings. The acquisition follows strong second-quarter results driven by rising demand for Zebra’s devices and a recent acquisition of 3D imaging firm Photoneo.

Zebra’s shares jumped nearly 7% in premarket trading following the announcement and an upward revision of its annual revenue and profit guidance. The company benefits from increased digitization in retail and logistics, with its products aiding inventory management, warehouse operations, and shipment tracking.

The Elo Touch acquisition, expected to close in 2025, will add self-service kiosks, payment terminals, and touchscreen systems to Zebra’s portfolio, enabling frontline workers to better serve customers. CEO Bill Burns described the deal as a “next step” to accelerate frontline connectivity and estimated it expands Zebra’s addressable market by $8 billion.

Elo Touch, serving clients including JCPenney, has annual sales near $400 million. The acquisition is expected to be immediately accretive to earnings and to generate around $25 million in additional core profit three years after closing.

Zebra’s Q2 performance also benefited from lower tariffs than anticipated, with supply chain diversification across China, Vietnam, Malaysia, and Mexico helping manage costs. In April, Zebra raised prices on most North American products to offset tariff-related pressures.

For the full year, Zebra now expects sales growth between 5% and 7%, up from a prior range of 3% to 7%. Adjusted earnings per share guidance has been raised to $15.25–$15.75 from $13.75–$14.75.

In Q2, sales rose 6.2% to $1.29 billion, meeting estimates, while adjusted EPS of $3.61 exceeded expectations of $3.32.