Every Palantir Investor Should Keep an Eye on This Number

Revenue Growth and Stock Performance - Palantir's stock has surged 379% year to date as of Dec 26, driven by strong growth in government contracts and commercial business [5] - The company has delivered five consecutive quarters of accelerating revenue growth and eight consecutive quarters of expanding operating margins [2] - Revenue growth is identified as the most critical metric for Palantir's stock price growth, with a need to continue accelerating to maintain gains [1][4] Valuation and Market Expectations - Palantir's stock price has grown faster than its underlying business, leading to a sky-high price-to-sales ratio of 75 [6] - The company's lofty valuation requires sustained revenue growth at or above 30% to justify its market value [1] Strategic Developments and Partnerships - Palantir's stock received a boost from a strong Q3 earnings report and the election of Donald Trump, which increased expectations of government defense and intelligence spending [3] - The company recently partnered with defense tech start-up Anduril to form a consortium bidding on defense contracts, challenging traditional industry leaders [3] Business Leverage and Market Position - Palantir has achieved profitability on a GAAP basis and gained admission into the S&P 500, reflecting its growing leverage in the market [2] - The company has established itself as a leader in AI software, supported by its new AI platform [5]