Palantir's stock is up 1,700% since its NYSE debut five years ago. Here's how it got there

Core Viewpoint - Palantir Technologies has experienced significant growth since its public listing in September 2020, with its stock price surging over 1,700% and reaching a market cap of over $432 billion, positioning it among the top 20 most valuable U.S. companies [4][3]. Financial Performance - Palantir's quarterly revenue surpassed $1 billion for the first time last quarter and is projected to reach $4.2 billion this year, marking an increase of almost sixfold from 2019 [5]. - The total contract value of bookings in the latest quarter soared 185% to $1.1 billion, with U.S. commercial revenue jumping 93% year-over-year [20]. Customer Base and Market Expansion - The number of Palantir's customers grew from 125 in the first half of 2020 to 849 by the end of June [5]. - Palantir has attracted corporate clients such as Wendy's and American Airlines, while government business still accounts for the majority of its revenue [19]. Valuation and Market Perception - Palantir trades at 226 times earnings over the next 12 months, with a forward revenue multiple exceeding 80, significantly higher than Tesla's multiples [7]. - Critics, including noted short-seller Andrew Left, argue that Palantir's valuation is detached from its fundamentals, suggesting it should be priced at $40 based on comparisons with OpenAI [8][9]. Strategic Developments - The launch of Palantir's AI platform, AIP, in April 2023 has been pivotal in expanding its commercial market presence, enabling faster and more efficient data analysis [19]. - Palantir secured a contract to create AI-powered mobile ground stations for the Pentagon, with the total ceiling for its Maven Smart Systems contract raised to $1.3 billion [22]. Leadership and Company Philosophy - CEO Alex Karp has been a vocal defender of the company's business model and has expressed a belief in Palantir's potential to become a leading software company globally [9][14]. - Karp has criticized Silicon Valley's prevailing values, asserting that Palantir shares fewer of the technology sector's commitments [15].