Will Palantir Stock Join The $1 Trillion Market Cap Club by 2030? The Answer May Surprise You.

Group 1: Market Performance - Palantir's stock has experienced significant volatility, with prices fluctuating between $80 and $120 within a few months [1] - The company's market capitalization has reached $280 billion, making it the 37th largest company globally [2] Group 2: Revenue Growth - Palantir's revenue growth has accelerated to 39%, driven by a 71% year-over-year increase in U.S. commercial revenue [5] - The company closed 139 deals worth at least $1 million and 31 deals worth at least $10 million in Q1 2025 [5] - With a current revenue of $3.1 billion, Palantir could potentially exceed $10 billion in revenue within this decade if growth continues [6] Group 3: Profitability - Palantir has improved its profitability, achieving a 13% operating margin over the last 12 months [7] - The company maintains 80% gross margins, indicating potential for higher operating margins as it matures [8] - Large software providers with similar gross margins typically achieve operating margins of 30% to 40% or higher, which Palantir may reach as revenue surpasses $10 billion [9] Group 4: Valuation Concerns - Despite strong growth and improving margins, Palantir's stock is considered overvalued and unlikely to reach a market cap of $1 trillion by 2030 [11][12] - Even in an optimistic scenario of 50% annual revenue growth and a 40% operating margin, the stock would still be overvalued based on projected earnings multiples [13] - The recommendation is to avoid investing in Palantir stock for the next five years due to its overvaluation [14]