Stock Performance - Palantir stock gained 12 7% in December 2024, continuing its strong performance from earlier in the year [1] - The stock has climbed 3 5% early in 2025 trading, building on its 2024 momentum [5] Defense Industry Wins - Palantir partnered with Booz Allen Hamilton to accelerate US defense technology innovation [2] - The company secured a $36 8 million one-year contract expansion with US Special Operations Command [2] - Palantir won a $400 7 million four-year contract with the US Army, potentially reaching $618 9 million [3] - The company is reportedly forming a next-generation defense consortium with Anduril, another defense contractor [4] Financial Performance - Q3 2024 revenue increased 30% year-over-year to $726 million [5] - Net income more than doubled to $149 3 million in Q3 2024 [6] - Adjusted free cash flow more than tripled to $434 5 million in Q3 2024 [6] - The company achieved a 20% net income margin and 60% free-cash-flow margin in Q3 2024 [6] Valuation - Palantir is currently valued at 168 times this year's expected earnings [7] - The company trades at approximately 52 times expected sales [7]

Performance and Growth - Palantir's stock surged 340% in 2024, reaching a market cap of $167 billion [1] - The company achieved five consecutive quarters of accelerating revenue growth, driven by the popularity of its AI analytical tools [3] - US commercial revenue grew 54% YoY in Q3 2024, reaching a record $179 million [4] - US government revenue increased 40% YoY to $320 million in the same quarter, remaining the largest segment [5] - International government and commercial revenue grew 13% and 3% respectively, despite challenges in Europe and the Middle East [6] Financial Metrics and Valuation - Palantir generated over $2.5 billion in annual revenue with a GAAP net income margin of 20% and operating margin of 16% in the last quarter [7] - The company is projected to reach $10 billion in annual revenue by 2029 with a 30% net margin, potentially generating $3 billion in annual earnings [8] - The stock has a forward P/E ratio of over 60 based on potential $3 billion earnings, nearly triple the S&P 500's forward P/E of 22 [9] - Palantir's trailing P/S ratio of 68 is among the highest in history, reflecting extremely high market expectations [10] Future Outlook - Continued quarter-over-quarter revenue growth acceleration could lead to further stock gains in 2025 [11] - Long-term investors should consider the stock's price relative to future earnings and cash flow potential [12] - The current $167 billion market cap appears significantly overvalued compared to even the most optimistic future earnings projections [13]

Palantir Technologies - Palantir was the best-performing stock in the S&P 500 last year, driven by momentum in its AI platform and its focus on workflow and application layers of AI [1] - The company is transitioning customers from proof of concept to production, indicating a significant growth opportunity [1] - Palantir's stock is trading at a forward P/S ratio of 40x for fiscal 2025, more than double the peak SaaS multiples from a few years ago [2] - Executives, including the CEO and CTO, have been aggressively selling shares in recent months [2] Nvidia - Nvidia has been a major beneficiary of AI, with its GPUs becoming the backbone of AI infrastructure, leading to a 94% revenue growth last quarter [4] - The stock trades at a forward P/E ratio of under 31x and a PEG ratio of approximately 0.96, indicating an attractive valuation [5] - Nvidia is poised to benefit from the increasing demand for GPUs as AI models require exponentially more computing power [6] - Meta's Llama 4 model is being trained on 160,000 GPUs, and xAI's Grok 4 on 200,000 GPUs, with future models potentially requiring clusters of 1 million GPUs [7] - Nvidia's CUDA software platform and AI-specific microlibraries give it a competitive edge in the AI infrastructure space [8] Salesforce - Salesforce is trading at 7.7x next year's analyst estimates, making it an attractively priced alternative to Palantir [9] - The company is focusing on agentic AI with its Agentforce solution, which is considered the next step beyond generative AI [10] - Agentforce AI agents can perform complex tasks autonomously, with applications in retail and customer service [11] - The product costs $2 per conversation, and Salesforce has closed 200 deals since its October launch, with thousands more in the pipeline [12] - Salesforce forecasts deploying 1 billion Agentforce AI agents by the end of fiscal 2026 and has already released Agentforce 2.0 with new features [13] - Despite slower growth compared to Palantir, Salesforce is at the start of a significant AI opportunity [14]

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Market Performance and Drivers - The S&P 500 achieved a 23.3% gain in 2024, following a 24.2% increase in 2023, marking the best two-year cumulative gain of 53.2% since 1997-98 [2] - The SPDR S&P 500 ETF Trust (SPY), a proxy for the S&P 500 Index, gained 25.5% in 2024 [3] - The "Magnificent Seven" tech stocks, with a combined market-cap valuation surpassing $18 trillion, drove the broad market rally, accounting for 31% of the S&P 500's weightage [4] - The Federal Reserve cut interest rates three times in 2024, reducing borrowing costs and stimulating economic growth, which boosted the stock market [5] - President-elect Donald Trump's win in November 2024 fueled market optimism due to expectations of deregulation, lower corporate tax rates, and a focus on the resilient U.S. economy [6] Top-Performing Stocks in SPY - Palantir Technologies Inc. (PLTR) soared 340.5% in 2024, accounting for 0.32% of SPY's assets, with an estimated earnings growth rate of 24% for 2025 and a Zacks Rank 2 [11] - Vistra Energy Corp. (VST) surged 258% in 2024, making up 0.09% of SPY's assets, with an estimated earnings growth of 36.8% and a Zacks Rank 1 [12] - NVIDIA Corp. (NVDA) jumped 171.2% in 2024, representing 6.7% of SPY's assets, with an estimated earnings growth of 41.5% and a Zacks Rank 2 [13] - United Airlines Holdings, Inc. (UAL) rose 135.3% in 2024, accounting for 0.06% of SPY's assets, with an estimated earnings growth of 15.20% and a Zacks Rank 2 [14][15] SPDR S&P 500 ETF Trust (SPY) Overview - SPY holds 503 stocks, with no single stock accounting for more than 8% of its assets, ensuring balanced exposure across sectors [9] - The fund is widely diversified, with significant allocations to information technology, financials, consumer discretionary, and healthcare sectors [9] - SPY has an AUM of $626.4 billion, charges 9 bps in annual fees, and trades an average daily volume of 38 million shares [10] Market Outlook for 2025 - Wall Street strategists expect strong trends to continue in 2025, with the median year-end target for the S&P 500 at 6,600, representing a 12% increase from current levels [7] - The targets range from Oppenheimer's 7,100 to Stifel's 5,500, reflecting varying expectations for the market's performance [7]

Palantir Technologies Overview - Palantir Technologies stock price is $79 08, down 3 06 from its previous close [1] - The stock has a 52-week range of $15 66 to $84 80 [1] - The P/E ratio is 395 42, indicating a high valuation [1] - The consensus price target is $41 00, suggesting a potential halving of the current price [1][6] Market Sentiment and Analyst Views - Palantir Technologies currently has a "Reduce" rating among analysts [3] - Top-rated analysts recommend five other stocks over Palantir Technologies [3][8] - UBS Group initiated coverage with a valuation of $80 per share, indicating potential upward revisions to price targets [20][25] Institutional Investment and Index Inclusion - State Street increased its Palantir stock holdings by 96 4% as of November 2024, ending the year with a $3 1 billion position [15] - Palantir's addition to the Nasdaq-100 index is expected to drive institutional capital inflow and bullish price action [10][18] Valuation and Future Outlook - Palantir's current P/B ratio is 50 9x, which may seem cheap compared to future valuations [13] - The stock is expected to dominate 2024 and 2025 due to momentum, fundamentals, and sentiment [5][7] - The role of artificial intelligence in cybersecurity is a growing theme that supports Palantir's future growth [5] Comparative Analysis - NVIDIA's P/B multiple is 52 0x, showing that investors are willing to pay a premium for companies that justify their valuations [2] - Some investors considered NVIDIA expensive at a 40 0x P/B ratio in 2023, but the stock continued to rise [19] Industry Trends - The technology sector's focus on artificial intelligence development and adaptation is a dominant theme in 2024 [17] - Companies in different verticals, including cybersecurity, have gained market favor through price action [17]

A woman walks under a sign of big data analytics US software company Palantir at their stand ahead ... [+] of the World Economic Forum (WEF) annual meeting in Davos on May 22, 2022. (Photo by Fabrice COFFRINI / AFP) (Photo by FABRICE COFFRINI/AFP via Getty Images)AFP via Getty ImagesPalantir Technologies stock (NASDAQ: PLTR) has gained close to 11% over the last five trading days. The stock has also risen over 4.5x since the beginning of the year, trading at about $82 per share currently. So what’s been dri ...

Palantir Technologies (PLTR -3.72%) shares have advanced 360% this year, outpacing the next closest stock in the S&P 500 (^GSPC -1.11%) by 100 percentage points. The data analytics company is now worth $180 billion, but certain Wall Street analysts expect Shopify (SHOP -1.62%) and Uber Technologies (UBER -0.70%) to surpass that figure before year's end in 2025.Shopify is currently worth $140 billion. The stock price needs to increase 29% next year for the company's market value to reach $180 billion. Equity ...

Nvidia (NVDA -2.09%) and Palantir (PLTR -3.72%) have been two of the best-performing stocks on the market this year, and artificial intelligence is the major reason.Nvidia needs little introduction at this point. The chip stock has come to dominate the market for data center GPUs (graphics processing units) in the AI boom, which has driven its stock price up roughly 10 times since the start of 2024. Palantir, meanwhile, has emerged as the biggest winner in software from AI as its experience with deep data m ...

Company Performance - Palantir Technologies has been one of 2024's top-performing stocks, surging 376% and reaching a record high of $84 [5] - The stock is currently trading at $79.08, significantly outpacing the S&P 500 and positioning the company for further capital inflows [5] - Palantir's inclusion in the Nasdaq 100 index reflects its strong market performance and growth potential [5] Analyst Opinions - UBS has set a cautious price target of $80 for Palantir, acknowledging its advancements in AI but warning of stretched valuation [1] - Dan Ives of Wedbush Securities has dubbed Palantir the "Messi of AI," citing its pivotal role in the AI sector and the broader wave of AI investments as key growth drivers [1] - Some Wall Street analysis suggests that Palantir's current pricing reflects optimistic future growth expectations, which could lead to a sharp decline if unmet [6] Strategic Milestones - Palantir secured FedRAMP High Authorization, allowing its platforms to support sensitive U.S. government workloads [1] - The company recently won a $618.9 million contract with the U.S. Army to enhance its data-driven decision-making platform, reinforcing its role in national defense and AI innovation [1] Technical Analysis - The stock is nearing a critical resistance zone around $88, which could trigger a final spike before a significant correction of 40% to 45% [3] - Declining trading volume at these levels suggests weakening momentum, supporting the hypothesis of an impending correction [3] - A correction would provide an ideal entry point for investors, offering a breather after the stock's red-hot rally and allowing for a more sustainable upward trajectory [1][7] Investor Sentiment - Palantir's sustained upward momentum could deter new investors as it offers minimal entry options [6] - A correction would make the stock more accessible and alleviate concerns about overvaluation [6] - The company's reliance on government contracts for revenue stability has raised concerns amid potential budget cuts [6]