If You'd Invested $100 in Palantir Stock 3 Years Ago, Here's How Much You'd Have Today

Core Insights - Palantir has emerged as one of the most talked-about stocks in 2023, largely due to the success of its AI tools amid the ongoing AI boom [1] - The stock price has increased by 143% year to date as of August 14, 2023, reflecting the heightened interest and hype surrounding the company [1] - An investment of $100 in Palantir three years ago would now be worth over $1,850, indicating significant returns [3] Business Performance - Palantir's core business model has remained consistent over the past three years, but public perception has shifted from viewing it as a niche government contractor to recognizing its potential in commercial applications [5] - In Q2, Palantir achieved its first $1 billion quarter, representing a 48% year-over-year increase, with U.S. government revenue up 53% and U.S. commercial revenue up 93% year-over-year [6] Valuation Concerns - Despite its strong performance, Palantir's stock is currently trading at nearly 135 times its sales, which is considered excessively high by most valuation standards [6] - While Palantir has established itself as a leader in its industry, expectations for similar returns over the next three years may lead to disappointment, suggesting a need for a long-term investment approach [7]