Palantir Technologies Inc. (NASDAQ:PLTR) on Monday said that the latest surge in its revenue is being driven less by new customer wins and more by existing clients sharply increasing their spending. Revenue Growth Comes From Bigger Deals, Not More Customers During the company's fourth-quarter earnings call, Palantir CEO Alex Karp told investors that the company's growth is coming from deeper engagement with serious customers rather than a rapid expansion of its client base. "If you look at our numbers ver ...

As AI-connected company valuations continue to inflate, Palantir Technologies, Inc. (NASDAQ:PLTR) CEO Alex Karp positioned his company as the sober adult in the room. During Palantir's earnings call on Monday, Karp took direct aim at the industry trend of circular AI investments—a practice where tech giants invest in startups so those startups can spend that capital back on the investor's own cloud services or hardware.PLTR stock is moving. See the chart and price action here. Critique of Round-TrippingKarp ...

Group 1 - Alex Karp, CEO of Palantir, believes that the need for large-scale immigration will diminish, except for individuals with specialized skills essential to companies like Palantir [1][5] - Palantir's stock has increased by over 130% in the past 12 months, raising its market value to approximately $400 billion [3][7] - Karp's perspective on immigration is tied to the branding of Palantir, suggesting that the company's software will enable businesses and governments to achieve more with fewer employees [5][6] Group 2 - The financial implications of Karp's comments highlight that corporate America prioritizes financial considerations over ideological debates regarding immigration [8] - Typical costs for large employers hiring non-U.S. citizens include various government fees, which can significantly impact the overall expenses associated with H-1B visa applications [9]

Core Insights - Palantir Technologies (PLTR) has experienced a nearly 120% gain over the past year, indicating growing confidence in the company's long-term positioning rather than short-term speculation [1][8] - The company's elevated valuation reflects market conviction in its execution, expanding use cases, and durable customer relationships, with a trailing 12-month price-to-earnings ratio exceeding 495 times and a forward 12-month multiple above 158 times [2][8] Valuation and Growth - Palantir is no longer valued solely on promise; it has shown improving operating leverage, rising commercial adoption, and a clearer path to scaling beyond its traditional government roots, justifying its premium valuation [3][5] - The valuation risk is more about pacing than overextension, as Palantir does not require explosive growth to support its current multiple but rather consistency in contract wins, customer expansion, and platform stickiness [4][5] Competitive Landscape - As Palantir's valuation increases, companies like Lockheed Martin (LMT) and RTX Corporation (RTX) provide more stable defense exposure with lower earnings multiples and large backlogs, offering steadier cash flow and less volatility [6][9] - Lockheed Martin's trailing and forward 12-month price-to-earnings ratios are just above 19 times, benefiting from global rearmament, while RTX's ratios are above 31 times and 28 times respectively, highlighting their stability in the defense sector [9]

Key Points Palantir proved it can scale profitably. Commercial AI changed the long-term story. Palantir is evolving into a core AI infrastructure. 10 stocks we like better than Palantir Technologies › For years, Palantir Technologies (NASDAQ: PLTR) divided investors. Bulls saw a once-in-a-generation data platform with deep government ties. Bears saw a niche contractor with limited scalability and opaque economics. In 2025, that debate shifted meaningfully. Palantir didn't just ride the AI narrat ...

Palantir (NASDAQ:PLTR) has been one of the best AI stocks of the year, nearly tripling in value as its software continues to attract governments and businesses. ...

Core Viewpoint - Palantir's stock has significant future growth potential, but its current valuation may limit investment attractiveness [1][10][12] Group 1: Company Performance - Palantir's stock has experienced substantial growth, with an initial investment of $10,000 three years ago now worth approximately $220,000 [1] - The company has seen impressive growth rates, with commercial revenue increasing by 73% year over year to $548 million and government revenue rising by 55% year over year to $633 million [7] - Palantir's software, initially developed for government use, has expanded into the commercial sector, with notable adoption by companies like American Airlines and BP [3][4] Group 2: Market Position and Valuation - Palantir's current market capitalization is around $401 billion, with a stock trading at 106 times sales and 224 times forward earnings, making it one of the most expensive stocks in the market [5][10] - The company has approximately 530 U.S. commercial clients, indicating significant room for expansion [6] - If Palantir maintains a 60% compound annual growth rate (CAGR) over the next three years, projected revenue could reach $15.9 billion, with profits of $6.4 billion [10][11] Group 3: Investment Outlook - Despite the potential for growth, the current premium valuation raises concerns about future returns, suggesting that the stock price may decrease if it trades at a more reasonable valuation [10][11] - The company is viewed as a strong business, but the high valuation makes it less attractive for investment at this time [12]

Core Viewpoint - Michael Burry, known for predicting the housing market crash, is currently bearish on the U.S. stock market and has made significant short bets against AI stocks, particularly Palantir and Nvidia [2][3][4]. Company Analysis - Scion Asset Management, led by Burry, purchased 5 million put options on Palantir with a notional value of over $912 million and 1 million puts on Nvidia in the third quarter [4]. - Palantir's stock has increased by 156% this year and trades at approximately 300 times forward earnings, raising concerns about its valuation [8][10]. - Despite Palantir's strong third-quarter earnings, which exceeded analysts' expectations, CEO Alex Karp criticized short sellers like Burry, asserting that the companies he is shorting are profitable [11]. Industry Insights - Burry's recent tweets indicate a belief that the market is in a bubble, supported by charts showing slowed cloud growth and high technology capital expenditure growth reminiscent of the dot-com bubble [5][6]. - The AI sector, particularly companies like Palantir and Nvidia, has attracted significant investor enthusiasm, but the high valuations pose risks for potential investors [10][11].

Core Viewpoint - Palantir's Q3 earnings were exceptionally strong, but there are concerns regarding its high valuation and how much growth is already reflected in the stock price [1][2][15]. Financial Performance - Palantir reported a year-over-year growth of 121% in its US commercial business, with an operating margin expanding to over 50% from 34% a year ago [12]. - Government revenue growth slightly decelerated from 53% to 52% quarter-on-quarter, which may be impacted by the ongoing government shutdown [4]. Valuation Concerns - The stock is currently trading at an extreme valuation of 83 times 2026 sales and over 200 times earnings, which raises questions about its sustainability [2][6]. - Analysts express that Palantir trades at about five times higher than other companies in the infrastructure software sector, indicating a potential overvaluation [2]. Market Reactions - Despite strong earnings, Palantir's shares have been a drag on the S&P, suggesting that market sentiment is heavily influenced by valuation concerns rather than fundamentals [5]. - The stock reached an all-time high of 207, but there are predictions it could fall to around 150-160, reflecting the volatility and uncertainty surrounding its valuation [8]. Competitive Landscape - Palantir's execution in the AI space is highly regarded, with many investors recognizing its strong performance and product adoption [15][16]. - The debate among investors centers on how much growth has already been priced into the stock, with some expressing confidence in the company's fundamentals despite valuation concerns [15][19].

Core Insights - Palantir Technologies debuted on the New York Stock Exchange in September 2020 amidst the COVID-19 pandemic, positioning itself as a unique player in the market focused on data analysis for government and military applications [1][2] - Over five years, Palantir's stock price surged by more than 1,900%, leading to a market valuation exceeding $440 billion, surpassing major companies like Boeing, IBM, and AMD [3] - The company has evolved from a small data firm to one of the 20 most valuable public corporations in the U.S., playing a critical role in the intersection of AI, national security, and global power [4] Company Developments - Palantir secured a significant $10 billion, 10-year contract with the U.S. Army, marking its largest contract to date and establishing its software as integral to military battlefield intelligence systems [5][6] - This contract not only represents a financial milestone but also embeds Palantir's technology deeply within the U.S. defense infrastructure, highlighting its long-term strategic importance [7]