Palantir Technologies shares extended their post-earnings rally on Friday, and the leveraged GraniteShares 2x Long PLTR Daily ETF (PTIR) moved even harder on the back of it. The gains build on Palantir's second-quarter beat and a broader lift in software stocks, while PTIR's daily-reset structure shows how sharply a leveraged bet can diverge from the stock it tracks.
Palantir shares traded at $169.42, up 9% on the day and 28% over the trailing week. PTIR jumped another 18% in the same session. The leveraged fund has gained 45% over the post-earnings window from August 3 through August 6, and 54% over the trailing week.
Earnings reset the growth story
Palantir's second-quarter report marked its 10th consecutive earnings beat. Revenue grew 92.83% year over year to $1.94 billion. U.S. commercial and government revenue came in at $764 million, up 149%, and $809 million, up 90%, respectively. Full-year guidance was raised to a range of $8.15 billion to $8.158 billion, implying 82% year-over-year growth.
According to 24/7 Wall St., Palantir CEO Alex Karp said: "Demand for AI sovereignty has now been unleashed".
Leveraged ETF amplifies, then decays
PTIR is a single-stock leveraged ETF that seeks twice the daily performance of Palantir stock and resets that exposure at the end of each session, typically using total-return swaps on a cash and Treasury collateral base. As a result, gains and losses compound off a new base every day, so the fund's return can drift far from a simple 2x of Palantir's move over weeks or months.
That drift shows up in the trailing numbers. PTIR is down 43% year to date and down 51% over the past year. Palantir itself is down only 12% year to date and 13.16% over one year over the same stretch.
Software stocks catch a broader bid
Friday's advance also drew strength from shifting sentiment toward software stocks generally. Over the past year, investors worried that advances in AI would erode the software business, a fear that sent many software-as-a-service stocks plunging and left Palantir facing concerns about both an AI spending slowdown and AI automating tasks once handled by enterprise software.
Better-than-expected results elsewhere helped ease those worries. Twilio's stock surged as much as 31% Friday after reporting record profits and cash flow, reinforcing the view that AI is not about to displace software wholesale. Palantir itself now trades at 74 times next year's expected earnings, and its triple-digit profit growth helps justify that premium.
Sources: 24/7 Wall St., Fool
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