Prediction: This Will Be Palantir's Stock Price in 3 Years

Core Viewpoint - Palantir Technologies has experienced a remarkable stock performance in 2025, with a rise of approximately 100% so far, making it one of the most popular stocks in the market [1][2] Company Performance - Palantir's growth is driven by its AI-powered data analytics software, which has transitioned from government use to commercial applications over the past decade [4] - In Q1, Palantir's government revenue increased by 45% in both the U.S. and globally, indicating ongoing development in AI-powered government solutions [5] - The U.S. commercial segment is growing rapidly, with a year-over-year increase of 71% in Q1, although global commerce sales are lagging due to slower AI adoption in Europe [6] - Overall, Palantir achieved a companywide growth rate of 39% during Q1, raising questions about the sustainability of this growth rate in the coming years [7] Revenue and Profit Projections - Over the past 12 months, Palantir generated $3.11 billion in revenue, and if it can accelerate its growth rate to 50% and sustain it for three years, projected revenue could reach $10.5 billion [8] - Assuming an improvement in profit margins to 30%, Palantir could produce $3.15 billion in profits during this period [9] Valuation Analysis - Many software companies trade at 10 to 20 times sales and 30 to 50 times earnings; applying these multiples suggests a stock price of $89 based on price-to-sales and $67 based on price-to-earnings [11] - These valuations are significantly lower than the current stock price of around $150, indicating that Palantir's stock is trading at an inflated valuation [12] - The current valuation reflects expectations of over three years of growth, suggesting a frothy market condition that may lead to a decline in stock price if expectations are not met [14]