Palantir Technologies: Could the Stock 10x by 2035?

Core Insights - Palantir is recognized as a leading AI stock with significant shareholder returns, raising questions about its potential for further growth over the next decade [1] Company Performance - Palantir's AI platform has experienced strong growth, providing AI-powered data analytics software that integrates multiple information streams for actionable insights [3] - The company has transitioned from a government-focused entity to a substantial player in the commercial sector, with commercial revenue becoming increasingly important alongside government revenue [4] - In Q1, Palantir reported a 39% increase in revenue, with management projecting a 38% growth for Q2, although historical performance suggests actual growth may exceed this projection [5] Stock Valuation - Palantir's stock price has surged over 700% since the beginning of 2024, while revenue growth stands at only 39%, raising concerns about the sustainability of its stock price [6] - The current valuation exceeds 110 times sales, a level rarely achieved by successful companies, especially given Palantir's slower revenue growth compared to peers like Nvidia, which peaked at a valuation of 45 times sales [10][12] - For Palantir to align its valuation with typical software company metrics, revenue would need to quadruple, a challenging prospect at current growth rates [13] Future Outlook - Given the high expectations already reflected in the stock price, it is unlikely that Palantir will achieve a 10x return over the next decade, and it may struggle to outperform the market [14]