Will NATO Deal Boost Palantir Stock? Consider PLTR Valuation First

Core Insights - Palantir Technologies Inc. has experienced significant share gains since going public in September 2020, with a recent NATO military deal enhancing its growth prospects [1][11] Group 1: NATO Deal and Growth Prospects - The NATO contract involves the use of Palantir's Maven Smart System, an AI-powered tool for analyzing drone and satellite data, which is expected to be operational within 30 days [2] - The deal is anticipated to help Palantir expand its international market presence, particularly as European NATO members increase their defense budgets [3] Group 2: Customer Base and Revenue Growth - Palantir's total customer count increased by 43% year-over-year in the fourth quarter, with 129 deals worth at least $1 million [5] - The company's revenues reached $828 million in the fourth quarter, reflecting a 36% year-over-year increase, with a revenue guidance of $3.75 billion for 2025, up 31% year-over-year [6] Group 3: Business Model Resilience - Palantir's business model is less affected by tariff issues due to its hardware-free revenue streams and U.S.-centric operations, allowing it to maintain stock value amid market volatility [10] - The stock has gained 9.9% month-to-date, contrasting with a 5.6% decline in the Internet-Software industry [8] Group 4: Investment Considerations - Stakeholders are advised to retain Palantir stock due to its growth potential, although the company's high forward price-to-earnings (P/E) ratio of 167.05 raises concerns about lofty expectations [11] - New investors are recommended to wait for a significant price drop before purchasing shares, as Palantir is well-positioned to benefit from the expanding AI software market [14]