Palantir Just Delivered Another Blowout Earnings Report. Should You Still Worry About Valuation?

Core Viewpoint - Palantir Technologies has experienced significant revenue and profit growth, driven by high demand for its AI-driven software, despite concerns over its surging valuation [2][3][4]. Company Background - Palantir has been in operation for over 20 years, initially focusing on government clients before launching its IPO a few years ago. The stock faced stagnation after an initial rise post-IPO [5]. Financial Performance - In the latest quarter, U.S. commercial revenue surged 137% to $507 million, while U.S. government revenue increased by 66% to $570 million, resulting in a record profit of $609 million [8]. - The company has a market capitalization of $333 billion, with a gross margin of 82.37% [7]. Product Development - Palantir launched its Artificial Intelligence Platform (AIP), which has gained popularity among both government and commercial customers, significantly contributing to earnings growth [7][9]. - The number of U.S. commercial customers has grown from 14 to 571 over the past five years, indicating substantial growth potential [10]. Valuation Considerations - Despite traditional valuation measures indicating a high stock price, the stock has dropped from its peak, and growth investors may find potential in Palantir's strong earnings trends [11][13]. - Long-term investors may benefit from holding Palantir shares, as the company's momentum appears to be strong [14].