Core Viewpoint - Palantir Technologies has seen significant stock performance, up 43% year to date, but its strong Q1 results did not lead to new highs, with the stock dropping over 10% post-earnings announcement [1] Group 1: Stock Performance and Analyst Ratings - The stock is currently trading at a high valuation of 474 times earnings, leading to a "hold" rating from most Wall Street analysts [2] - Wedbush analyst Dan Ives maintains a bullish outlook, raising the price target from $120 to $140 and predicting a market cap increase to $1 trillion in three years, implying a share price of over $400 [2][3] Group 2: Revenue Growth and Business Demand - Palantir's U.S. revenue grew by 55% year-over-year, driven by demand for its AI platforms, which help businesses restructure their data systems [7] - The company secured several multimillion-dollar deals in Q1, including contracts with a large healthcare company and a global bank [8] Group 3: Government Contracts and Military Applications - Palantir's U.S. government revenue increased by 45% year-over-year, bolstered by new contracts with the Department of Defense [10] - The company's software is utilized by the U.S. military for real-time data analysis in special operations, showcasing its capabilities in complex environments [9] Group 4: Valuation Concerns - Palantir's trailing-12-month revenue stands at $3.1 billion, resulting in a price-to-revenue multiple of 87, which is considered expensive compared to peers like Nvidia and ServiceNow [12][13] - To reach a $1 trillion market cap, the stock would need to trade at 153 times 2027 revenue estimates, which may be challenging given the company's guidance of only 36% revenue growth for 2025 [14]