Palantir now among 10 most valuable U.S. tech companies — its earnings multiple is astronomical

Core Viewpoint - Palantir Technologies has entered the top 10 U.S. technology companies by market capitalization, surpassing Salesforce and other legacy tech giants, driven by a significant increase in its stock price and strong government business growth [2][3][5]. Group 1: Market Performance - Palantir's market valuation reached $281 billion, an increase of approximately 8% in one day, positioning it ahead of Salesforce, which is valued at $268 billion [2]. - The company's stock price has more than quintupled over the past year, with a 58% increase in 2025, making it a top performer in the S&P 500 for the second consecutive year [3]. - Despite Palantir's strong performance, the Nasdaq index has declined by 7% this year, indicating a divergence from broader tech market trends [3]. Group 2: Financial Metrics - Palantir's forward price-to-earnings ratio stands at 196.9, significantly higher than the average of 58 for other top tech companies [4][9]. - The company reported a 45% growth in its government business, reaching $373 million in the last quarter, which includes a $178 million contract with the U.S. Army [5]. - Palantir's trailing earnings multiple is 520 times, and its revenue multiple is 90 times, indicating a high valuation compared to its peers [8]. Group 3: Competitive Landscape - Palantir's revenue generation is substantially lower than Salesforce, which produced over 10 times more revenue in the past year and is expected to do so again [7]. - The company has faced scrutiny regarding its high valuation multiples, with analysts expressing concerns about irrational valuation compared to its fundamentals [8][9]. - Despite the high valuation, Palantir's CEO expressed confidence in the company's growth strategy and partnerships, suggesting a focus on long-term dominance rather than immediate stock performance [11].