Should Palantir (PLTR) Stock Be in Your Portfolio Going into 2025?

Core Viewpoint - Palantir Technologies (PLTR) has experienced significant stock performance, with a year-to-date increase of over 300% and a total gain of 600% since its IPO in 2020, raising questions about its place in investor portfolios as the new year approaches [1] Group 1: Market Sentiment and AI Boom - Palantir is benefiting from the AI boom, with its flagship platform, Palantir Foundry, integrating data through AI and machine learning to provide actionable insights for complex workflows [2] - The Palantir Artificial Intelligence Platform (AIP) aims to enhance productivity and reduce costs, while the Edge AI platform supports the training and management of AI models for real-time decision-making [2] - Strategic partnerships with the U.S. government, including a recent contract extension for the U.S. Army Data Platform, have further bolstered investor sentiment [3][10] Group 2: Financial Performance - Palantir's total sales are projected to increase by 26% in fiscal 2024 and by another 24% in fiscal 2025, reaching $3.5 billion [4] - The company's annual earnings are expected to rise by 52% this year to $0.38 per share, compared to $0.25 in 2023, with FY25 EPS projected to grow by 24% to $0.47 [4] - Palantir has consistently met or exceeded the Zacks EPS Consensus for eight consecutive quarters, indicating strong financial performance [11] Group 3: Earnings Estimate Revisions - Recent revisions show FY24 and FY25 EPS estimates have increased by 5% and 9% respectively over the last 60 days, suggesting potential for further upside in Palantir's stock [12] - The current consensus estimates for EPS are stable, with no changes in the last 30 days, indicating confidence in the company's earnings trajectory [5] Group 4: Investment Viability - Palantir is considered one of the top-performing stocks in 2024, with its software being critical for complex organizational tasks, including counter-terrorism operations for government agencies [7] - The company is viewed as a viable option for portfolio growth, supported by positive earnings estimate revisions and strong market interest in AI solutions [13]