Core Insights - Palantir Technologies was the best performing stock in the S&P 500 in 2024, with a share price increase of 340% driven by strong demand for its artificial intelligence platform [1] - In 2025, Palantir has continued its momentum with a year-to-date return of 57%, again making it the top performer in the S&P 500 [2] - Wall Street analysts have a median target price of $96 per share for Palantir, indicating a potential downside of 20% from the current price of $120 [2] Company Overview - Palantir operates in a $100 billion-plus industry, developing data analytics software for both commercial and government sectors [4] - Its core products, Gotham and Foundry, utilize machine learning to analyze complex data, while its AI platform, AIP, enhances these products with large language model support [4][5] - The company claims to be the only software provider capable of operationalizing AI effectively, transitioning AI from prototype to production [5] Financial Performance - Palantir reported a 36% revenue increase to $828 million in the fourth quarter, with a 75% rise in non-GAAP net income to $0.14 per diluted share [5] - The number of customers grew by 43% to 711, and existing customers increased their spending by 20% [5] - Analysts expect Palantir's first-quarter revenue to rise by 36% to $862 million, with adjusted earnings increasing by 62% to $0.13 per diluted share [8] Market Position and Recognition - Forrester Research recognized Palantir as a technology leader in AI and machine learning platforms, scoring AIP higher than similar offerings from Google and Microsoft [6] - The AI platform market is projected to grow at an annual rate of 40%, reaching $153 billion by 2028 [6] Valuation Concerns - Wall Street estimates a 35% earnings increase for Palantir in 2025, but the current valuation of 290 times earnings is considered expensive [10] - The price-to-earnings-to-growth (PEG) ratio exceeds 8, which is significantly higher than the traditional threshold of 2 or 3 for being considered high [10]

Core Viewpoint - The rise of artificial intelligence (AI) has created significant opportunities for companies like Palantir Technologies, which specializes in data mining and AI solutions, leading to substantial stock price increases and investor interest [1][2][3]. Company Overview - Palantir Technologies has a long history of AI development, initially focusing on U.S. intelligence and law enforcement applications, and has evolved to address complex business problems through data analytics [5][6]. - The company launched its Artificial Intelligence Platform (AIP) to leverage company-specific data for tailored solutions, capitalizing on the growing demand for AI [6][7]. Financial Performance - In the fourth quarter, Palantir's revenue grew by 36% year-over-year, with adjusted earnings per share (EPS) increasing by 75%. U.S. commercial revenue, including AIP, rose by 64%, and the customer count in this segment jumped by 73% [9]. - The remaining deal value in the U.S. commercial segment increased by 99%, indicating strong future growth potential [9]. Market Sentiment - Despite strong financial performance, Wall Street remains cautious, with only 4 out of 25 analysts rating the stock as a buy, while 84% do not recommend it as a buy at present [13]. - Palantir's current valuation metrics show it trading at 210 times forward earnings and 57 times forward sales, which many consider excessively high, although the forward price/earnings-to-growth (PEG) ratio suggests it may be fairly valued [11][12]. Long-term Outlook - Industry experts believe that Palantir is well-positioned to benefit from the ongoing shift towards AI, especially as companies seek efficiency amid economic uncertainty [15][16]. - Investors are advised to adopt a long-term perspective, as stock price volatility is expected, with strategies such as dollar-cost averaging recommended for building positions over time [17].

Oliver Rodzianko is a macro-focused investment analyst with a global perspective and a focus on public equity strategy. His approach is grounded in valuation discipline and long-term fundamentals, with emphasis on sectors including technology, semiconductors, AI, and energy. He is U.S.-market centered, with international awareness informing his process. He manages a long-only, unleveraged portfolio designed to preserve capital and capture asymmetric upside around key market dislocations. Positions are held ...

Wow. Palantir Technologies Inc. (NASDAQ: PLTR ) has proved its mettle once again by generating moderate positive returns amid a broader market sell-off ( SPY , SPX , IVV , VOO ) since my last update on the stock:Providing alpha-generating investment ideas. I am an independent investor managing my family's portfolio, primarily via a Self Managed Super Fund. You can expect my articles to deliver a clearly structured, evidence-based thesis. But first and foremost, I encourage readers to judge me on my performa ...

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Now you can get access to the latest and highest-quality analysis of recent Wall Street buying and selling ideas with just one subscription to Beyond the Wall Investing ! There is a free trial and a special discount of 10% for you. Join us today!If you read my past articles on Palantir Technologies Inc. (NASDAQ: PLTR ) stock, you probably know that I was a bear a couple of years ago, before the firm opened up a new revenueDaniel Sereda is chief investment analyst at a family office whose investments span co ...

Despite Wall Street's optimistic outlook for big tech in 2025, most technology stocks have struggled significantly during the first four months of the year. The Nasdaq-100, which consists of the 100 largest nonfinancial companies listed on the Nasdaq stock exchange, has declined by nearly 7% year-to-date at the time of this writing.While sharp marketwide corrections can be unnerving, history consistently demonstrates that these periods often create exceptional wealth-building opportunities for investors wit ...

Palantir (PLTR 2.15%) is one of the most valuable companies in the world, with a market cap of around $250 billion. That places it within the top 50 largest companies, but some (including myself) question whether this is a legitimate valuation.While Palantir had great success and is a strong company, a few items cause me to question this valuation, which could lead to some other stocks being worth far more than Palantir just three years from now.Is Palantir overvalued?Palantir is a fantastic company. Its AI ...

Which of these volatile AI stocks is a better investment right now?SoundHound AI (SOUN -1.90%) and Palantir Technologies (PLTR 2.15%) are both well-positioned to profit from the rapid growth of the artificial intelligence (AI) market. SoundHound develops AI-powered speech and audio recognition tools, while Palantir's AI-driven data mining services help government agencies and large companies make faster and smarter decisions.SoundHound went public by merging with a special purpose acquisition company (SPAC) ...

Palantir Technologies (PLTR 2.15%) probably has helped make some investors millionaires in recent times. After all, the software company saw its stock soar more than 1,000% over the past three years. This was as demand for Palantir's products -- including an artificial intelligence-driven (AI) platform -- surged and revenue climbed in the double digits quarter after quarter.And considering the latest demand trends and Palantir's forecasts, this revenue momentum may be far from over. Still, these incredible ...