Company Overview - Palantir Technologies achieved its biggest profit ever in 2024, joined the S&P 500, and saw its stock price soar 340% due to its focus on artificial intelligence (AI) and growth in sales to both government and commercial customers [1] - The company has been in business for over 20 years, helping customers aggregate and utilize data, with governments being its biggest customers historically [3] - Recently, commercial customers have shown increasing interest in Palantir, with revenue and customer numbers suggesting this segment could become a major growth driver [3] Growth Drivers - Palantir's Artificial Intelligence Platform (AIP), launched a little over a year ago, has driven significant demand, particularly in the commercial sector [5] - The number of U.S. commercial customers grew from 14 four years ago to about 300 today, with U.S. commercial revenue climbing 54% in the most recent quarter [5] - Palantir's boot camps for AIP have been highly successful, often resulting in major contracts, such as seven-figure deals with three customers within two months of attending the boot camps [6] Financial Performance - Palantir reported its highest-ever quarterly profit of $144 million in the most recent period [7] - The company's forward PEG ratio is currently 0.3, down from more than 0.6 a few weeks ago, suggesting potential for further gains [9] Valuation and Future Prospects - Palantir shares trade at 150 times forward earnings estimates, which appears expensive, but the company's growth prospects are strong [8] - The company's forward PEG ratio of 0.3 indicates that the stock may not be overvalued and could still be worth buying [9] - Long-term investors may find Palantir a winning move, as the company has the potential to deliver earnings growth and stock performance over time [10][11] Industry Impact - Palantir's data aggregation and AI capabilities have produced significant results for both government and commercial businesses, improving efficiency and enabling the development of game-changing products or services [4] - The company works with major names such as the Cleveland Clinic and United Airlines, helping them manage patient placement and design predictive maintenance systems [4]
After a 340% Gain Last Year, Could Palantir Soar Again in 2025?