Why Palantir Stock Climbed 12.7% in December

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]