Palantir's Stock Soars on AI-Driven Growth, Analysts Divided on Future Prospects

Palantir Stock Surged To A New Record Last Week -- Watch These Key Price Levels

Investors should watch key support levels on Palantir's chart around $85 and $66. Palantir (PLTR) shares will likely remain in focus Monday after having a solid last week. The company's stock soared to a new high after investor optimism around its strong 2025 outlook and integration of Grok, the chatbot from Elon Musk's xAI, into its artificial intelligence (AI) platform. Since the company's upbeat results last Monday, several analysts have raised their price targets on the stock, which has fueled this price rise. The stock, which became a component of both the S&P 500 and Nasdaq 100 index in 2024, trades nearly 50% higher since the start of the year through Friday's close and has returned an eye-popping 370% over the past 12 months amid soaring demand for its AI-powered analytics software that allows customers to make more informed data-driven decisions. Importantly, the move occurred on the highest weekly trading volume since early February last year, indicating strong buying conviction by larger market participants. Moreover, the relative strength index (RSI) confirms bullish price momentum with a reading above 80, though the indicator also flashes overbought conditions that raises the possibility of near-term profit taking. To forecast how a continuation move in Palantir shares may look, investors can use the bars pattern tool, a technique that analyzes prior trends to speculate future directional movements. When applying the analysis, we take the stock's trending move from February to November last year and reposition it from last week's breakout. This forecasts a target of around $240 and indicates the uptrend could last until November this year based on price history. To put things in perspective, that's more than double the $110 level the stock closed at on Friday. We selected this prior trend as it followed a volume-backed earnings-driven breakout from an earlier rectangle formation on Palantir's chart, potentially providing insight as to how a similar move may take shape. Finally, selling below this level could see Palantir shares revisit lower support around $66, a location that may attract buying interest near the rectangle's lower trendline. The comments, opinions, and analyses expressed on Investopedia are for informational purposes only. Read our warranty and liability disclaimer for more info.

Palantir up 7.9% at $111: Too high or just the beginning?

Palantir Technologies (PLTR) stock surged as much as 7.9% on Thursday, continuing a winning streak that started earlier in the week following the company's strong financial results. As of 3:23 p.m. ET, the stock remained up 7.9%. The rise came after Palantir's fourth-quarter report, released after market close on Monday, which exceeded consensus estimates. Analysts had to adjust their expectations, resulting in multiple upgrades and price target increases across Wall Street. Palantir is up 340% YoY but analysts say the best is yet to come Morgan Stanley analyst Sanjit Singh upgraded Palantir from underweight (sell) to equal weight (hold), raising the price target to $95 from $60. Despite concerns regarding valuation, Singh sees potential for further upside. Wedbush analyst Dan Ives maintained an outperform (buy) rating, increasing the price target to $120 from $90, indicating an 18% potential gain for investors. Ives described Palantir as "playing chess in the AI arms race while others play checkers," calling it a "transformational tech stock." Bank of America analyst Mariana Perez Mora provided the highest price target on the Street at $125, which implies a 23% upside compared to Wednesday's closing price, emphasizing Palantir's unique value proposition in the AI market. Despite the positive sentiment, analysts caution about the stock's current valuation, which is at 195 times expected earnings for the upcoming year, leaving little margin for error. Some analysts predict a potential double-digit pullback within the year. On Thursday, the stock closed at a record high of $111.28 after more than quadrupling in value over the past year, leading gains in the Nasdaq 100 and ranking among the best performers in the S&P 500. Following the strong 2025 forecast provided by Palantir, several major firms, including Bank of America, Citi, UBS, Wedbush, and Morgan Stanley, significantly raised their price targets. Additionally, Palantir announced plans to integrate Grok, a chatbot from Elon Musk's xAI, into its Artificial Intelligence Platform. Bank of America analysts indicated that Musk's new Department of Government Efficiency and a renewed focus on AI from the Trump administration could offer substantial opportunities for Palantir. The tech sector continues to adapt amid competition from emerging AI models, specifically referencing DeepSeek, which has prompted companies, including OpenAI, to reconsider their strategies and focus on efficiency. Despite the market sell-off triggered by DeepSeek's advancements, tech stocks have rebounded, with European markets reaching new highs. Palantir Technologies Inc. (NASDAQ:PLTR) ranks 7th on a list of top AI stocks trending on Wall Street, with 43 hedge fund holders. Although some analysts maintain a bearish outlook, citing premium valuation and potential market corrections, others recognize the firm's growth trajectory, attributed in part to its software products, Foundry and Gotham, which are gaining traction. The bearish stance comes as William Blair analyst Louie DiPalma reiterated a 'Sell' rating due to concerns over valuation compared to similar peers. Disclaimer: The content of this article is for informational purposes only and should not be construed as investment advice. We do not endorse any specific investment strategies or make recommendations regarding the purchase or sale of any securities.

Palantir at $116: If last year's run wasn't a fluke, is $200 next?

Palantir Technologies (NASDAQ: PLTR) has emerged as a leading stock on Wall Street, with shares up 51% year-to-date and more than 380% over the past 12 months. Analysts are inquiring where Palantir shares will be in one year as the company shows significant growth potential. Palantir's stock has experienced a remarkable increase. Just one year ago, its market capitalization was approximately $58 billion. Currently, it exceeds $260 billion, representing over a fourfold return within the year. If this growth trajectory continues, Palantir could reach a $1 trillion market cap in about a year, although this prospect is viewed with caution by some experts. The surge in Palantir's stock price is attributed to its solid performance and the company's strategic positioning in the rapidly expanding field of artificial intelligence (AI). Like the personal computer revolution in the 1980s, AI stands to transform organizational operations, and Palantir aims to be a front-runner in this domain. In its latest financial report for the three months ending December 31, 2024, Palantir reported a 43% year-over-year growth in overall customers. Revenue grew by 36% compared to the previous year, with a notable 52% increase in overall U.S. revenue and a 64% surge in the U.S. commercial market. The company also achieved a 63% adjusted free cash flow margin. In recent market activity, Palantir stock reached a record high of $116 before settling at $110.85, marking a 34.38% increase from its price of $82.49 on January 31. The company's net income grew by 16% year-over-year to $462 million, supported by a 29% increase in revenues to $2.87 billion. U.S. revenues alone surged by 38% to $1.9 billion during this timeframe. Palantir's fourth-quarter results included a net income increase of 10% to $79 million and a 36% rise in revenues, totaling $828 million, with U.S. revenues growing by 52% to $558 million. The firm's market capitalization is currently around $240 billion, surpassing well-known companies such as American Express, McDonald's, and Disney. The demand for AI solutions has significantly boosted Palantir's growth, as evidenced by a 510% rise in its share price over the past year. The fourth-quarter report, released on February 3, 2025, exceeded Wall Street's expectations, resulting in a stock surge of 23% following the announcement. Palantir has established itself as one of the top contenders in the AI software market. According to third-party research, it possesses a highly competitive AI platform, positioned to benefit from a market projected to generate $153 billion in revenue by 2028. Accenture projects that AI could potentially double global annual economic growth by 2035, solidifying the importance of integrating AI into business operations. How 2025 looks like for Palantir stock The company's Artificial Intelligence Platform (AIP) supports its commercial and government customers in integrating generative AI into their operations. This innovation facilitates real-time decision-making and enhances operational efficiency. During its latest earnings call, Palantir management noted that AIP drives new customer acquisitions and significant expansion opportunities with existing clients. Palantir reported a 43% year-over-year increase in customer count during the fourth quarter of 2024, surpassing the 35% growth seen in the same quarter last year. Additionally, the net dollar retention rate improved by 12 percentage points from the previous year, reaching 120%. The remarkable increase in remaining deal value (RDV) of 40% year-over-year to $5.4 billion suggests robust future revenue growth. Finishing 2024, Palantir observed a 29% revenue increase to $2.87 billion and anticipates a slight uptick in revenue growth to just over 30% in 2025. This expectation stems from the growing demand for its AI software platform, positioning Palantir for potential stronger growth than anticipated in the coming years.

Palantir is up 340% YoY but analysts say the best is yet to come

Analysts have upgraded Palantir Technologies (PLTR) stock following its fourth-quarter earnings results, which exceeded expectations, and highlighted the company's "relentless" potential in artificial intelligence (AI). The stock price surged approximately 25% in early trading, bringing its year-to-date increase to nearly 40%. DA Davidson analyst Gil Luria maintained a Neutral rating on Palantir, but raised the price target from $47 to $105. Luria attributed the "outstanding" quarterly performance and accelerating revenue growth to strong U.S. demand for AI solutions, noting that Palantir is well positioned to assist customers in utilizing large language models (LLMs). Other firms also upgraded their ratings, with UBS increasing their price target from $80 to $105 while keeping a Neutral rating, and RBC Capital raising its target from $11 to $40 but maintaining an Underperform rating. Despite positive outlooks, RBC expressed concerns about Palantir's growth potential and product differentiation, especially in light of expectations from increased defense spending under President Trump. Palantir's 22% stock surge is grabbing headlines but this number matters more Palantir's latest results showed adjusted earnings of 14 cents per share and $828 million in revenue, surpassing analyst expectations of 11 cents per share and $776 million in revenue. The company also provided optimistic guidance, forecasting first-quarter revenue between $858 million and $862 million, above the $799 million estimate. For the full year, Palantir projects sales of $3.74 billion to $3.76 billion, exceeding the expected $3.52 billion. The company reported a remarkable 340% increase in stock value in 2024, driven by its growing AI platform, with government contracts contributing 55% to its revenue. CEO Alex Karp highlighted that U.S. commercial revenue grew by 64% while U.S. government revenue increased by 45% year over year, and he expects 54% growth in U.S. commercial sales for 2025. During a shareholder letter, Karp emphasized the transformative momentum in their commercial and government segments, calling it "unlike anything that has come before." He characterized the company's trajectory as the beginning of a revolution in the U.S. AI landscape, asserting Palantir's commitment to maintaining U.S. technological superiority and national security. Despite the positive outlook, Deutsche Bank analyst Brad Zelnick pointed out Palantir's high price-to-sales ratio of 70, which significantly exceeds the S&P average of 3 and even Nvidia's 35. Zelnick remains cautious, holding a sell rating on the stock while acknowledging the impressive earnings report. Palantir's market capitalization reached up to $240 billion following the earnings report, positioning it among notable firms valued at $200 billion or more, including American Express and McDonald's. This significant rise in value reflects investor enthusiasm amidst the ongoing AI revolution. CEO Alex Karp's personal wealth increased by $1.2 billion following the stock surge, while cofounder Peter Thiel's fortune grew by $2.4 billion. Karp expressed satisfaction with the company's advancements and its appeal to retail investors during the earnings call, stating, "We're doing it. We're doing it. And I'm sure you're enjoying this as much as I am." Disclaimer: The content of this article is for informational purposes only and should not be construed as investment advice. We do not endorse any specific investment strategies or make recommendations regarding the purchase or sale of any securities.

Palantir Soars Again. How High Can the AI Stock Go? | The Motley Fool

Palantir (PLTR 9.79%) came into its fourth-quarter earnings report with its shares priced to perfection, but the AI stock lived up to the markets' expectations. Shares jumped as high as 28% on Feb. 4 after the company smashed expectations, showing that its momentum continues to build. Revenue growth accelerated again, coming in at 36% to $828 million, which easily beat the analyst consensus at $781 million. That was driven once again by Palantir's home market. U.S. revenue rose 52% to $558 million, with commercial revenue up 64% and government revenue up 45%. CEO Alex Karp noted that growth in Europe was disappointing as revenue increased just 4%. Management noted in the earnings call that European clients still seem hesitant to embrace the new technology. Nonetheless, the U.S. business is clearly strong enough to drive the overall company, and bottom-line results beat expectations as well. Adjusted operating income improved to $373 million, up from $209 million a year ago, and adjusted earnings per share rose from $0.08 to $0.14, ahead of the consensus at $0.11 per share. Palantir's other metrics showed that its AI platform (AIP) is continuing to drive growth and separate it from the competition. Its U.S. commercial remaining deal value, a proxy for its business backlog, jumped 99% to $1.79 billion, and U.S. commercial total contract value jumped 134% to $803 million. Palantir still counts the U.S. government as its largest single segment, but the commercial market represents an even larger addressable market, and those numbers bode well for future growth. Palantir's take on AI has long been that the large language models (LLMs) that power ChatGPT and other chatbots will become commodities, so what counts is the software that's built on those models, such as its AIP. On the call, management said the DeepSeek release has led that thinking to become the industry consensus, and its investments in infrastructure and what it calls "Ontology" have given it a competitive advantage in creating productive AI services. Palantir describes its Ontology as a "digital twin of the organization" that bridges the company's AI platform and a client's business. Chief Technology Officer Shyam Sankar explained during the call: [W]e viewed LLMs as a new runtime for the AI labor. To capture the productive value of this AI labor, you need an intermediate representation of your enterprise that AI can actually interact with. How do you allocate inventory, onboard customers, process claims, call for prior authorization, and the like? That intermediary representation that makes all of that possible is Ontology, and that's why it's been the secret to our meteoric rise. In addition to its technological advantages, which are driving rapid growth and adoption, the company is also realizing scale advantages. Speaking to that and the power of the technology, Karp said: We do not need 500 extra people a quarter. We just -- we can really power these things because the pull, when people actually see it, is enough to break down the institutional barriers, the political [expletive] that often we were not able to break through in the past. At this point, it's hard to doubt the strength of Palantir's business, and its guidance showed its momentum is expected to continue through 2025. The company called for revenue of $3.741 billion to $3.757 billion for the full year, representing 31% growth, an acceleration from 27% in 2024, and it sees similar growth in adjusted operating income to a range of $1.551 billion to $1.567 billion. However, the question for investors has always been around the company's valuation, which is now even higher. Following the post-earnings surge, Palantir trades at a price-to-sales ratio of 89, and a price-to-earnings ratio near 550. On a forward-looking basis, those multiples fall to 63 and 188, respectively, so it appears Palantir could eventually grow into its valuation assuming it sustains its current momentum. But those valuations also set investors up for a lot of downside risk if it misses expectations, and things can change quickly in an emerging industry like AI. Palantir deserves credit for its remarkable rally, but the valuation is likely to put the brakes on this growth stock in the near term.

Is Palantir Technologies Stock a Buy Now? | The Motley Fool

Investors should be aware of the stock's steep valuation before buying shares. Shares of Palantir Technologies (PLTR -0.39%) have been one of the best-performing artificial intelligence (AI) stocks over the past few years. Another blowout earnings report sent the stock surging in early February. The stock rocketed 340% in 2024 and is already up 46% year to date in 2025. When you're providing a product that delivers tangible savings to organizations, you're going to be growing like there's no tomorrow. Palantir's revenue accelerated to 36% year over year in Q4 and 14% over the previous quarter. Let's look at why the company's momentum is for real and whether investors should pull the trigger at these highs. Palantir continues to see balanced growth for its software across government agencies and U.S. corporations. But the latter is where the action is right now and why investors are so bullish on the company's prospects. U.S. commercial revenue grew 64% over the year-ago quarter, outpacing the 45% increase in U.S. government revenue. Overall, Palantir closed 129 deals worth over $1 million each, up from the 104 deals it signed in Q3. This is the result of companies achieving real savings by using Palantir's AI. For example, Palantir is working with an automotive supplier to automate manual checks performed by its human engineers. Those manual checks would otherwise take up to 100 hours to complete. This is why some Wall Street firms are projecting that AI will add trillions of dollars' worth of value to the economy. The productivity gains from AI could be significant, and Palantir is clearly going to be one of the leading providers of enterprise software that helps organizations realize these benefits. One executive on the company's Q4 earnings call mentioned they feel energy on the ground talking to customers and the impact they are seeing from using the product. This bodes well for another year of strong growth. Palantir is clearly in the pole position in the AI software market. But this doesn't necessarily mean investors should run out to buy the stock. Palantir's shares look frothy. Its market cap (share price times total shares outstanding) has shot up to $252 billion at the time of writing, which is steep compared to the company's $2.86 billion in trailing-12-month revenue. Palantir could double its revenue in 2025, representing a significant acceleration over its current growth rate, but the stock would still trade at an expensive price-to-sales multiple of 45. Even using the company's free cash flow, the shares are trading at a high multiple of 238. That's pricing in a lot of growth even though the company is already converting a high percentage of its revenue into cash flow. Stocks can outperform business fundamentals for a short while but not consistently over the long term. Palantir shares are fetching incredibly high multiples of revenue, free cash flow, and earnings that will be difficult to justify. Keep in mind that Palantir grew revenue at an even higher rate (41%) in 2021 before the stock fell 64% in the market correction in 2022. The stock is priced for perfection and then some, raising the risk of another sell-off. I would avoid chasing the stock now and wait for a dip before starting a position.

Palantir Technologies Surges to $100: Is This Red-Hot AI Stock Still a Buy? 3 Analysts Weigh In. | The Motley Fool

The stock's ascension from $6 to over $100 in just over two years is one of Wall Street's most incredible hot streaks. It's hard to believe that Palantir Technologies (PLTR -0.39%) traded for $6 per share in early 2023. Its share price recently shot past $100 after stellar Q4 earnings underlined the company's continued momentum in artificial intelligence (AI). As exciting as the ride has been for shareholders, it's always fair to question a stock that generates such significant returns in so little time. Those who follow the company will rightfully point out Palantir's accelerating revenue growth and enormous addressable market. After all, Palantir's AI software is being used for various applications, ranging from military use to managing supply chains. However, the business and the stock aren't the same, and it can be problematic when they stretch too far apart. Three Fools assessed the dynamic between Palantir's business and its stock to determine whether investors should continue buying shares at these levels. Granted, those are lofty comparisons. But when you step back and consider the landscape, Palantir is starting to show signs that it can deliver a revolution in its own right. In its most recent quarter (the three months ended on Dec. 31, 2024), Palantir reported that its U.S. revenue alone increased by 52% year over year to $558 million. Commercial U.S. revenue grew by an even faster rate of 64%. In short, American companies are simply shoveling money to Palantir for the use of its AI-powered platform. Or, as Karp puts it: The business we have built has now developed its own internal momentum and strength, its own interior life and forms of untamed organic growth, with the output that we are seeing far surpassing what we are investing. Like the megacap tech names before it, there seems to be a rush for organizations to get their hands on Palantir's AI-powered platform to improve margins, increase customer satisfaction, grow sales, or all of the above. Granted, there are concerns that Palantir's valuation is too rich, even with its rapid growth. And, fair enough, the stock is expensive -- for now. Its price-to-sales ratio of 96 times puts the stock far out of reach for any value investor -- and even for most value-conscious growth investors. Nevertheless, just like Amazon in the early 2000s, valuation may not be a helpful lens in this case, assuming the company in question is forging a new path that can deliver decades of growth. While it's still early, I think it's becoming easier to see why Palantir might be doing just that. Will Healy: At first glance, Palantir does not look like a stock to avoid. Indeed, the AI-driven productivity gains delivered to customers appear game-changing, prompting considerable growth in its client base. Also, its earnings report in the fourth quarter of 2024 was phenomenal, pointing to increased revenue growth and rapidly rising profits. Unfortunately, financial gains are worth only so much, and the increases in Palantir stock have appeared to exceed that growth by nearly every valuation measure. Investors could dismiss the trailing P/E ratio of over 530 since it has only earned a profit for a relatively short amount of time. Nonetheless, the forward P/E ratio, which is now above 200, indicates the stock price is years ahead of its growth despite a 116% rise in yearly net income over the previous year. However, the company's price-to-book value ratio of 51 is arguably the most blatant sign of overvaluation. Although the S&P 500's average book value multiple of 5 is at multiyear highs, it is still a tiny fraction of where Palantir's price-to-book value ratio stands. Additionally, its book value multiple has caught up to Nvidia, one of the best-performing stocks in the AI industry. Such a level could imply limited upside in the near term. Indeed, Palantir has found a successful market niche in the AI software space, and investors should expect its revenue and profits to grow at a rapid pace for the foreseeable future. However, this prosperity has probably caused Palantir's stock performance to become unhinged from the company's fundamentals. Until Palantir experiences a significant pullback, investors should consider avoiding this stock. Justin Pope: These situations rarely have an obvious answer. Yes, Palantir is expensive by traditional metrics, but as Jake just discussed, history has shown that exceptional companies can defy conventional wisdom. It's still too early to make that call on Palantir, but the business is well on its way. Its uniquely flexible software intersects with an AI opportunity that some estimate will create trillions of dollars in economic value over the coming years. But sometimes, the stock moves faster than the business, which can cause trouble. Right now, Palantir's market cap is roughly $250 billion. The company generated $2.87 billion in revenue in 2024. To give some perspective to that, Palantir is now a larger company than some of the world's most prominent businesses, including McDonald's, Cisco, and Adobe: Yet, as you can see above, Palantir does only a fraction of the revenue. These are all different business models, but all three are highly profitable and have outstanding track records of sustained growth. When you buy Palantir today, you're essentially banking on Palantir to follow suit. Maybe Palantir will keep growing and eventually earn more revenue and profits than all these companies. If so, it's still hard to deny that much of the company's future success is reflected in the stock now. There's a good chance that the stock is more likely to go down than up from here, at least in the short term. Valuations act like gravity, pulling harder the further they get into the stratosphere. Investors should consider waiting for a pullback to buy the stock, or at the very least, buy slowly to leave some cash handy. Stocks that go up this far, this fast, often pull back hard, too.

Why Palantir Stock Is Skyrocketing This Week

Shares of Palantir (PLTR -0.39%) were flying this week. The company's stock gained 39.3% as of 1:50 p.m. ET on Friday, and was up as much as 41% earlier in the week. The leap comes as the S&P 500 (^GSPC -0.92%) was flat, while the Nasdaq-100 gained 0.4% in the week's trading. The artificial intelligence (AI)-powered intelligence and analytics company reported better-than-expected earnings this week, sending shares higher. The numbers Palantir saw its Q4 sales grow 34% year over year and 14% quarter over quarter, delivering earnings of $0.14 per share on $828 million in sales. The numbers handily beat Wall Street's targets of $0.11 per share and $776 million. The company's guidance also topped estimates: Palantir expects sales of $3.75 billion for 2025 when consensus estimates were $3.52 billion. Never one to shy away from a bold statement, CEO Alex Karp said of Palantir's performance, "Our business results continue to astound, demonstrating our deepening position at the center of the AI revolution." He drove home the point that Palantir saw the potential of large language models (LLMs) earlier than most, helping the company commercialize the technology better than many of its competitors. Palantir carries a hefty premium While the company's growth is impressive and its potential is clear, the stock isn't without risk. Valuation metrics aren't everything and can even be misleading, but Palantir's is so high that it demands attention. The company's price-to-earnings ratio (P/E) is currently 585 -- an extremely high figure. I don't want to downplay the company's real value and performance, but the truth is, there is a lot of hype surrounding the company. Given that hype and its sky-high valuation, any signs of weakness or slowing growth moving forward could spell trouble for its share price.

Prediction: Buying Palantir Stock Today Could Set You Up for Life | The Motley Fool

The booming demand for artificial intelligence (AI) software has supercharged Palantir Technologies (PLTR -0.39%) in the past year, with shares of the company rising more than 510%, as of this writing. This remarkable run can be attributed to the data analytics and software-platform provider's improving growth profile in recent quarters as more and more customers are using its AI offerings. The company released its fourth-quarter 2024 results on Feb. 3, crushing Wall Street's expectations handsomely. As a result, Palantir stock shot up a remarkable 23% following its report. The stock surged impressively, despite trading at an extremely rich valuation. However, a closer look at the way Palantir is benefiting from the opportunity in the AI software-platforms space will tell us just why the market is rewarding this company with a premium valuation. Palantir reportedly has one of the best AI platforms in the market as per third-party research, which puts it on course to make the most of a market that's expected to generate $153 billion in revenue in 2028. There's the potential for more upside in the long run, thanks to the potential impact of AI on global productivity over the next decade. Accenture estimates that AI could double the global annual economic growth rate by 2035, and integrating AI software into business operations is one of the ways in which companies and governments are going to enhance efficiency. Palantir is already capitalizing on this trend with its Artificial Intelligence Platform (AIP). This platform enables Palantir's commercial and government customers to integrate generative AI into their operations, allowing them to make decisions in real time and improving the efficiency and productivity of their business processes. This explains why Palantir management pointed out on its latest earnings conference call that AIP is fueling new-customer acquisition apart from opening up "significant expansion opportunities" with existing customers. The company witnessed a 43% year-over-year increase in its customer count in the fourth quarter of 2024, faster than the 35% increase it saw in the same quarter last year. Along with this, the company's net dollar retention rate increased by 12 percentage points from the prior-year period to 120% in Q4. As this metric compares the spending by Palantir's customers at the end of a quarter to the spending by those same customers in the year-ago period, a reading of more than 100% suggests that they increased the adoption of the company's platform. Even better, the rapid growth in the customer count and Palantir's ability to win a bigger share of its customers' wallets led to a remarkable year-over-year jump of 40% in its remaining deal value (RDV) last quarter to $5.4 billion. That was a major improvement over the 22% jump in this metric in the third quarter. The acceleration in Palantir's RDV is good news for the company and its investors as it refers to the "total remaining value of contracts as of the end of the reporting period." The fact that this metric increased at a faster pace than the 36% year-over-year increase in the company's revenue in Q4 points toward stronger top-line growth going forward. For some perspective, Palantir finished 2024 with a 29% increase in revenue to $2.87 billion. It's expecting a slight acceleration in revenue growth in 2025 to just over 30%. However, don't be surprised to see the company delivering much stronger growth than expected in 2025 and beyond, thanks to its rapidly growing revenue pipeline on account of the red-hot demand for its AI software platform. Palantir has made investors significantly richer in the past year. However, investing in just one stock in anticipation of life-changing returns isn't a smart move as any potential slowdown in the company's growth could send its stock spiraling. It's always a good idea to build a diversified portfolio spanning companies across multiple industries that can deliver robust long-term returns. Palantir has the potential to be one such growth pick for investors looking to build a portfolio that could possibly help them become millionaires in the long run. Of course, you may be wondering if Palantir is worth buying right now, even as a part of a diversified portfolio, considering its expensive valuation. After all, Palantir is trading at an expensive 74 times sales and 454 times earnings as of this writing. However, as discussed earlier, the company is one of the leading players in the AI software market and is attracting new customers while encouraging existing customers to spend more on its offerings. That's why it won't be surprising to see Palantir's revenue and earnings growth taking off in the long run. This explains why Palantir's forward earnings multiple of 175 is significantly lower than its trailing multiple. Also, the company is forecasting a 41% increase in its adjusted operating income this year, which is faster than its projected revenue growth for the year. That faster growth can be attributed to its favorable unit economics, which means that it's spending less money to generate more revenue. There's a solid chance that Palantir can sustain terrific levels of earnings growth in the long run and justify the expensive valuation at which it's trading. That's why investors looking to buy a growth stock can still consider adding Palantir to their portfolios, even after its outstanding run in the past year.

Palantir Surges on Strong Growth. Is It Too Late to Buy the Stock? | The Motley Fool

Palantir Technologies (PLTR -0.39%) stock continued its rapid ascent after the data analytics and artificial intelligence (AI) software company reported strong fourth-quarter results that once again showed accelerating revenue growth. The stock is up a whopping 510% over the past year, as of this writing. Palantir has become one of the biggest AI winners on the software side, but with that has also come a frothy valuation. Let's dive into the company's latest results to determine whether it's too late to buy the stock. For the sixth consecutive quarter, Palantir's revenue growth accelerated, rising from 13% to 36% in that period. Fourth-quarter revenue reached $828 million, and adjusted earnings per share (EPS) rose from $0.08 to $0.14 year over year. That was well ahead of the $0.11 in EPS on $776 million in revenue that analysts were expecting, as compiled by LSEG. Palantir's land-and-expand strategy is working as spending among existing customers continues to rise with trailing-12-month net dollar retention of 120%, a 200-basis-point improvement compared to last quarter. This metric measures revenue growth from customers that have been with the company for more than a year, and management noted the number doesn't reflect the strong growth it has been seeing from customers added within the past year. By segment, commercial revenue climbed 31% year over year to $372 million, with U.S. commercial revenue soaring 64% to $214 million as its customer count reached 383. International commercial revenue was a laggard, rising 3% to $158 million. On the government side of the business, revenue jumped 40% year over year to $455 million. U.S. and international government revenue climbed 45% and 26%, respectively. Palantir credited its strong U.S. government growth to good execution within existing programs and new awards as the government embraces its AI software. Management is guiding for full-year 2025 revenue of $3.741 billion to $3.757 billion, representing growth of about 31% from 2024. The U.S. commercial business will fuel that outlook with at least 54% growth. Adjusted operating income is expected to land between $1.551 billion and $1.567 billion. Palantir is undoubtedly a leader in AI software, and it still faces a huge opportunity as it continues to both add new customers across industries while growing its relationships with existing ones. The company wants to become the go-to AI operating system for companies, and it's making progress toward that goal. Rising profitability also means Palantir is generating its growth in a disciplined manner. However, valuation remains Palantir's biggest issue, and it trades at a forward price-to-sales (P/S) ratio of 63 as of this writing. I wouldn't be surprised if the company beats its outlook to grow revenue 40% in 2025. But can it repeat that performance over the next five years? It needs to in order to justify its valuation, and based on a theoretical $15.4 billion of revenue in 2029 and zero change to its market capitalization, the stock would still trade at a pricey 15 times revenue. Sustaining that type of growth in a industry as competitive as AI will be no easy task. Investors must manage their risk if they're going to chase this stock, and I suggest keeping any position in Palantir small.

Palantir Investors Just Got Spectacular News from CEO Alex Karp | The Motley Fool

The artificial intelligence (AI) specialist kicked its growth into overdrive. One of the most intriguing players to emerge in the era of artificial intelligence (AI) is Palantir Technologies (PLTR 1.51%). The company had already made a name for itself in the defense and intelligence spaces and has been working diligently to prove its mettle for enterprise-level businesses. Those aspirations have come into focus over the past couple of years, as Palantir has gained more than 900%. The commensurate increase in its valuation has raised the alarm and been the subject of much debate in Wall Street circles. Palantir reported results after the market close on Monday, and to say it crushed expectations might be an understatement. Not only did the company easily surpass estimates, but management's guidance suggests its growth will continue to accelerate. Let's take a look at what drove Palantir's robust results and what the future might hold. For the fourth quarter, Palantir generated revenue of $828 million, up 36% year over year and 14% quarter over quarter. This resulted in adjusted earnings per share (EPS) of $0.14, which climbed 75%. To put the results in the context of expectations, analysts' consensus estimates were calling for revenue of $782 million and EPS of $0.11, so Palantir easily cleared Wall Street's already high bar. The results were fueled by U.S. commercial revenue that jumped 64% year over year and 20% sequentially -- well ahead of management's guidance for growth of at least 50%. The U.S. government segment also answered the call, with revenue climbing 45%. Customer metrics underpinned the company's robust results. Palantir's customer count grew 43% year over year, driven by a 73% increase in U.S. commercial customers. The underlying deals that fueled the results were also eye-opening, as Palantir inked 129 deals worth at least $1 million. Of those, 58 were worth at least $5 million, and 32 were worth at least $10 million. It's worth noting that many of these contracts are also helping to lay the foundation for future profits. The company's remaining performance obligation (RPO) -- or sales not yet booked as revenue -- climbed 40% year over year to $1.73 billion. When RPO is outpacing current revenue growth, it provides insight into future potential, suggesting its growth spurt has further to run. The spark that ignited Palantir's blockbuster growth is the company's Artificial Intelligence Platform (AIP), which is revolutionizing the way businesses profit from AI. The company employed a novel approach, hosting boot camps that marry users with Palantir engineers to help them apply AI to mission-critical operations, "going from zero to use case in five days or less." That strategy has been wildly successful. Palantir provided full-year revenue guidance for 2025 of $3.75 billion, which would represent year-over-year growth of 31% at the midpoint of its guidance. The biggest contributor to its rosy outlook is the U.S. commercial segment -- which includes AIP -- as management is now forecasting growth of 54%, up from management's forecast for 50% growth just last quarter. In Palantir's letter to shareholders, CEO Alex Karp said of AI, "We are still in the earliest stages, the beginning of the first act, of a revolution that will play out over years and decades." The data clearly shows that Palantir is firing on all cylinders. However, some investors are concerned that the stock has gotten away from itself and Wall Street has joined the chorus. Of the 22 analysts that offered an opinion in February, only three rate it a buy or strong buy, 13 rate it a hold, and the remaining six rate hold underperform or sell ratings. Palantir's biggest doubters are nearly universal in citing the stock's valuation as the reason for their bearish calls. A quick look at the numbers helps illustrate why. The stock is currently selling for 412 times earnings and 75 times sales (as of this writing) -- which is astounding by any stretch of the imagination. However, the most widely used valuation metrics tend to fall short when assessing high-growth stocks. Applying the more appropriate forward price/earnings-to-growth (PEG) ratio -- which considers Palantir's accelerating growth -- clocks in at 0.38, when any number less than 1 suggests an undervalued stock. That said, given its lofty valuation, Palantir will continue to be volatile, and failure on the company's part -- real or perceived -- to live up to investors' elevated expectations could bring the stock crashing down. Recall that between early 2021 and late 2022, Palantir stock shed as much as 83% of its value. The generative AI market is expected to be worth between $2.6 trillion and $4.4 trillion over the coming decade, according to global management consulting firm McKinsey & Company. If Palantir can successfully navigate the stormy seas of AI adoption and continue to carve out a profitable niche for itself, the stock price could be much higher a decade from now -- but there will likely be numerous pitfalls along the way. Given the company's reliable execution, significant opportunity, and expanding profits, I believe Palantir Technologies is worth owning for the long term. However, given its frothy valuation, it may be safer to buy on weakness, or by dollar-cost averaging into the stock.

Why Palantir Stock Soared to a New All-Time High on Tuesday

Several analysts raised their price targets for the stock, with Wedbush calling it a "transformational" tech stock. Palantir (PLTR) shares soared to an all-time high Tuesday as several analysts raised their price targets after the company's outlook blew past analysts' expectations on strong demand for its Artificial Intelligence Platform. Shares of Palantir were up over 22% at $102.57 after jumping to an intraday record of $106.91, and on track to close at an all-time high for the third consecutive session after nearly quintupling in value over the past year. The gains propelled Palantir to the top of the S&P 500's best-performing stocks. Wedbush analysts reiterated an "outperform" rating for the stock Tuesday and lifted their price target to $120 from $90 on AI-driven growth, calling it one of a few "transformational" tech stocks with the potential to change the landscape. Bank of America analysts, who raised their price target to $125 from $90 and maintained a "buy" rating, said they see Palantir "enabling and leading the AI revolution in both Commercial and Defense markets." The analysts added they believe the Trump administration's focus on AI and the new Department of Government Efficiency led by Elon Musk could benefit Palantir. UBS analysts raised their objective for the stock as well, to $105 from $80, claiming the results suggested Palantir's high premium relative to its peer group is justified. Morgan Stanley analysts, who were among those concerned the stock could be overvalued ahead of Palantir's results, boosted their rating to "equal-weight" from "underweight," and increased their price target to $95 from $60, a level the stock quickly surpassed Tuesday.

Where Will Palantir Technologies Stock Be in 1 Year? | The Motley Fool

So, where will Palantir shares be in one year? Let's dig into the numbers and see what's possible. First things first, Palantir shares have been on an incredible ride. Indeed, one year ago, I argued that "Palantir is a great company and a solid investment, [but] I don't think it has what it takes to cross the very high hurdle of $1 trillion by 2035." When I wrote that, Palantir had a market capitalization of about $58 billion. As of this writing, it's over $260 billion -- and counting. That amounts to more than a fourfold return in less than one full year. In other words, at that rate, Palantir would crack the $1 trillion mark in about one more year. Needless to say, that seems overly optimistic, even for Palantir bulls like myself. Nevertheless, there's a reason why the company's stock has been skyrocketing: The company is on a path to something big. Here's what it is. Consider this: In the 1980s, personal computers were the great technological innovation. Almost everyone could see they were a big leap forward, but one question remained: Which operating system would emerge as the standard for the personal computer industry? Apple had the Macintosh with its own proprietary operating system; many other companies offered their own systems with various bells and whistles. Artificial intelligence (AI) today could be analogous to personal computers in the 1970s and 1980s. Today, the question is which company will develop the software that most elegantly harnesses the power of AI technology. There will be plenty of winners. Sure, Microsoft won the first great battles in the personal computing wars, but others, like Apple, eventually recovered and delivered massive gains for its shareholders. I believe Palantir could represent one of the first great AI software companies, a field which I expect to grow rapidly in the coming years. That's because AI -- along with robotics -- is poised to change the way organizations operate. Every aspect of operations, from logistics to customer service, even personnel management, can be improved with the aid of AI systems that will work 24 hours a day, 7 days a week. As a result, expect more blowout earnings reports like the one Palantir just delivered. For the three months ending on Dec. 31, 2024, the company reported: In short, the company's financial metrics are surging, as you would expect from a leader within a cutting-edge field. Investors should pay attention. While Palantir's run thus far has been impressive, the stock could have legs for many years to come.

Why Palantir Technologies Stock Skyrocketed on Tuesday

The catalyst that sent the artificial intelligence (AI) software and data mining specialist soaring was the company's quarterly financial report and bullish commentary from management that suggests the AI revolution has much further to run. You can't spell gains without "AI" In the fourth quarter, Palantir generated revenue that accelerated to 36% year over year (and 14% sequentially) to $828 million. This resulted in adjusted earnings per share (EPS) of $0.14, which soared 75%. To give the results context, analysts' consensus estimates were calling for revenue of $782 million and adjusted EPS of $0.11, so Palantir cleared both hurdles with ease. The U.S. commercial segment was the star of the show. Revenue surged 64% year over year and 20% quarter over quarter to $214 million, as waves of new customers flocked to Palantir's Artificial Intelligence Platform (AIP). The segment's customer rolls grew 73% year over year, while its remaining deal value -- or sales that have not yet been recognized as revenue -- soared 99%. Not only was new customer acquisition strong, but existing customers were spending more, as evidenced by a net dollar retention rate of 20%. Bullish outlook While there have been questions about the staying power of AI, CEO Alex Karp seemed to put those issues to bed. In the company's shareholder letter, he posited, "We are still in the earliest stages, the beginning of the first act, of a revolution that will play out over years and decades." To punctuate the already robust quarter, management provided full-year guidance that was well ahead of Wall Street's expectations, calling for revenue of roughly $3.75 billion, which would represent year-over-year growth of 31% at the midpoint of its guidance. Palantir also expects U.S. commercial revenue to increase 54%, up from expectations of 50% issued just last quarter. To be clear, the stock is currently selling for 192 times next year's expected earnings, so it isn't for the faint of heart. This is a great candidate for buying on the dip or dollar-cost averaging.

Why Palantir Technologies Stock Popped (Again) on Thursday | The Motley Fool

The artificial intelligence (AI) software and data mining specialist continued a trend that began earlier this week when the company reported blockbuster financial results. Since then, Wall Street has been scrambling to update its models, which has resulted in a raft of upgrades and price target increases. When Palantir released its fourth-quarter report after the market close on Monday, the strength of the results caught many investors by surprise. The company beat consensus estimates on both ends of the income statement, forcing analysts to rethink their expectations. There were many more, but you get the point. By my count, there were at least eight price target increases, though some analysts were admittedly playing catch-up. To be clear, there's a downside to all the current euphoria. The stock is currently selling for 195 times next year's expected earnings, which doesn't give Palantir a lot of room for error. While AI is the most groundbreaking technology in decades, investors should exercise caution with Palantir stock at this price. Don't get me wrong: I'm an unadulterated Palantir bull, but even I expect a double-digit pullback in the stock price at some point over the coming year.

1 AI Stock to Buy Before It Soars 335% to $1 Trillion, According to a Wall Street Analyst | The Motley Fool

The stock rose more than 20% on the news, pushing Palantir's market value to $230 billion. But Dan Ives at Wedbush Securities thinks that number is headed much higher. He recently told Schwab Network Palantir could be a trillion-dollar company within two or three years. That prediction implies 335% upside from its current market capitalization. Here's what investors should know about Palantir. Palantir specializes in data analytics. Its core software products, Foundry and Gotham, let clients integrate complex information and develop machine learning (ML) models. Its primary source of differentiation is software built around an ontology, a framework that maps digital data to real-world objects and defines the relationship between them. Users can query ontology data with analytics applications to surface insights that improve decision-making. For instance, a bank using Foundry to manage account information across different branches could query its ontology with ML models trained to identify fraudulent transactions and other financial crimes. In 2023, Palantir debuted AIP, an artificial intelligence (AI) platform that adds support for large language models to Foundry and Gotham, letting users engage the platforms conversationally. For instance, the bank from my previous example could prompt Foundry in simple text to automatically escalate certain issues and take appropriate action, like freezing accounts suspected of money laundering. International Data Corporation (IDC) recently recognized Palantir as the market leader in decision intelligence software. And Forrester Research recently ranked the company as a technology leader in AI/ML platforms, awarding AIP better scores than similar products from Alphabet, Amazon, and Microsoft. "Palantir is quietly becoming one of the largest players in this market," wrote analyst Mike Gualtieri. Looking ahead, IDC estimates AI platform sales will increase at 40% annually to reach $153 billion by 2028. Palantir currently ranks second behind Microsoft in revenue share, but the company is growing like wildfire. Dan Ives recently told Yahoo Finance that no other company has a product comparable to AIP. Palantir reported excellent financial results for the fourth quarter, beating estimates on the top and bottom lines. Its customer count jumped 43% to 711, while the average existing customer spent 20% more. In turn, sales increased 36% to $828 million, the sixth straight acceleration, and non-GAAP earnings surged 75% to $0.14 per diluted share. Palantir's profits have now exceeded expectations in six straight quarters, and the company's actual earnings during that period beat the consensus estimate by an average of 13%. In short, most Wall Street analysts have consistently underestimated the company by a wide margin. But the tide appears to be turning. Mark Giarelli at Morningstar recently wrote, "Palantir's outstanding fourth-quarter results, rapid growth amid the artificial intelligence arms race, and strategic positioning in the AI-value chain further solidify our base case expectations that this company can be the next software juggernaut." Since Palantir's impressive performance in the fourth quarter, numerous analysts have raised their earnings forecasts and fair value estimates. In fact, the average target price on the stock is now $81 per share. That is roughly double what it was a month ago, and nearly triple what it was three months ago, according to data from LSEG. Additionally, Wall Street now expects earnings to increase 37% in 2025, several percentage points faster than what analysts expected before the company reported fourth-quarter results. Even so, the current valuation of 240 times adjusted earnings is still very expensive by comparison. Investors should be very cautious about chasing the stock at its current price.

Prediction: Palantir Will Beat the Market. Here's Why. | The Motley Fool

Palantir Technologies (PLTR 23.99%) already delivered explosive earnings and stock price performances to investors last year. The company's quarterly revenue soared in the double digits, profit reached records, and the stock jumped 340% for the best performance in the S&P 500 (^GSPC 0.72%). The company reached key milestones too, such as joining that major benchmark, as well as winning a spot in the Nasdaq-100. All of this is thanks to a solid software business built up over 20 years, and in recent times, the company's harnessing of the power of artificial intelligence (AI) to supercharge growth. AI demand may very well be in its early stages -- signaling a lot more growth for Palantir ahead -- but the stock's meteoric rise prompted some analysts and investors to wonder if it was ripe for a pause. Wall Street has been cautious, with the average 12-month price forecast calling for a 29% decline in the stock from the closing price on Feb. 3. But I think this top stock, even after last year's gain, may just be getting started. My prediction is that Palantir will beat the market. Here's why. First, here's a quick summary of the Palantir path so far. As mentioned, the company has been around for a number of years -- but growth strongly accelerated in recent times thanks to all the work Palantir accomplished throughout its history, as well as key technology developments like AI that have driven a whole new wave of demand for its systems. Palantir makes software that helps customers aggregate their data and make better use of it. While this may sound mundane, it actually is just the opposite. Palantir's software can play a crucial role in a government or a company's operations -- resulting in game-changing decisions, new strategies, and more. For example, Palantir is working with a multinational bank to automate back office tasks -- and what took five days now takes only a few minutes. Another example: Rio Tinto, which recently extended its contract with Palantir, said Palantir's Artificial Intelligence Platform (AIP) is helping the metals and mining giant leverage its unstructured data -- as a result, Rio Tinto now can handle problems that before seemed too complicated. In its early days, Palantir was most associated with government contracts, but in recent years and thanks to the AI boom, commercial players have rushed to the company -- especially for AIP, a product released in 2023. AIP, an AI-driven approach applying large language models directly to a specific company's data and needs, has helped customers go from zero to an important use case in just a few hours. Palantir holds AIP boot camps so that potential customers can test the system out, which has fueled contract growth. Now, let's return to my prediction. All of this sounds great -- but why do I think that now, moving forward, Palantir will continue to beat the market? Many factors may boost Palantir in the months to come, but I see the commercial customer as the biggest growth driver. Palantir allows these customers to almost effortlessly apply AI to their businesses and see enormous results that could be transformative in the near and long term. So, thanks to Palantir, companies and organizations can quickly apply AI to their needs -- and win. And here, Palantir is seeing tremendous momentum, with U.S. commercial revenue soaring 64% to $214 million in the fourth quarter of last year, and U.S. commercial remaining deal value surging 99% to $1.79 billion. Palantir reported the figures early this week. U.S. commercial customer count also demonstrates this momentum, with 73% growth in the quarter year over year. Importantly, Palantir clearly is in the early days of this growth story. U.S. commercial customers today total 382, leaving plenty of room for growth -- and Palantir says it sees "significant expansion opportunities" within the current commercial customer base. On top of this, today's $200 billion AI market is forecast to reach beyond $1 trillion by the end of the decade -- in this environment, it's likely demand from commercial customers, who don't want to be left behind in this AI revolution, will remain high. All this makes me confident about my prediction that Palantir will beat the market, potentially in the coming months and over the long term, as its commercial customer growth story unfolds.

Palantir's 22% stock surge is grabbing headlines but this number matters more

Palantir shares surged as much as 22% in extended trading on Monday after the software company reported fourth-quarter earnings and revenue that surpassed Wall Street's estimates. The company posted earnings per share of 14 cents, adjusted, compared to the expected 11 cents, and revenue of $828 million versus the anticipated $776 million. Along with the fourth-quarter beat, Palantir offered better-than-expected guidance, projecting revenue between $858 million and $862 million for the first quarter of 2025, ahead of an LSEG estimate of $799 million. For the full fiscal year, the company forecasts sales between $3.74 billion and $3.76 billion, exceeding the $3.52 billion average estimate from analysts. How 2025 looks like for Palantir stock Palantir, a prominent provider of software and technology services to defense agencies, attributed much of its growth to its use of artificial intelligence. CEO Alex Karp noted, "Our business results continue to astound, demonstrating our deepening position at the center of the AI revolution. Our early insights surrounding the commoditization of large language models have evolved from theory to fact." Revenue for the fourth quarter increased 36% from $608.4 million a year earlier, while full-year sales rose by 29%. Karp remarked that the company's momentum is "unlike anything that has come before." U.S. commercial revenue grew 64% to $214 million, and U.S. government revenues increased 45% year over year to $343 million. The company expects U.S. commercial sales to grow at least 54% to about $1.08 billion in 2025. Karp mentioned, "We are still in the earliest stages, the beginning of the first act, of a revolution that will play out over years and decades," emphasizing that Palantir has "been preparing for this moment diligently for more than twenty years." Palantir's stock surged 340% in 2024, and it joined both the S&P 500 and Nasdaq 100 last year. The company has benefited from the boom in generative AI following the release of OpenAI's ChatGPT in late 2022. In a CNBC interview last week, Karp stated that Palantir is poised to lead the transformation of American companies and maintained that bolstering the U.S. is its "primary objective." In addressing concerns over China's emerging technology, particularly the DeepSeek AI model, Karp remarked, "Technology is not inherently good. We have to acknowledge that, but that also just means we have to run harder, run faster, have an all-country effort." Palantir recorded a net dollar retention rate of 120%, representing a 200 basis point increase from the previous quarter. The company reported an adjusted operating margin of 45%, the highest in its history, and a total remaining deal value of $5.43 billion, reflecting a 40% year-over-year increase. For the fourth quarter, adjusted free cash flow totaled $517 million, yielding a margin of 63%. The company closed $1.8 billion in total contract value (TCV), marking a 56% increase year over year. U.S. commercial TCV booked reached $803 million, a 134% growth year over year. Customer count increased by 43% year over year to 711 customers, with top 20 customers generating an average revenue of $65 million each, an 18% year-over-year increase. Despite the impressive financial results, Palantir faces challenges as international commercial revenue growth remained modest at 3% year over year in Q4. Additionally, the European market showed slower growth, achieving only 4% growth on 13% of the company's business, as the company encounters cultural and strategic differences in expanding its presence in Europe. Palantir's leadership acknowledged that revenue from strategic commercial contracts is expected to decline significantly in Q1 2025 and anticipated increased expenses in 2025 due to investments in technical hires and the product pipeline. The company seeks to maintain its edge through its unique ontology, enabling the development of software across various industries securely. Shyam Sankar, Palantir's chief technology officer, highlighted ongoing competition in the AI sector, emphasizing, "We are in an AI arms race," particularly referencing the progress made by China's DeepSeek. Sankar pointed to the necessity of a coordinated national effort to address the challenges presented by these technological advancements. Palantir's net income for Q4 was reported at $79 million, with a GAAP earnings per share of $0.03 for the quarter. Adjusted earnings per share stood at $0.14 in Q4 and $0.41 for the full year. As of the end of Q4, cash and equivalents totaled $5.2 billion. The 22% stock surge is grabbing attention, but the real indicators of Palantir's strength lie elsewhere. A $5.43 billion remaining deal value underscores long-term stability, showing that revenue isn't just growing -- it's secured. For those focused on expansion, the 134% year-over-year growth in U.S. commercial contract value highlights accelerating demand in a key market. On the profitability front, a 63% adjusted free cash flow margin signals operational efficiency at scale. And with a 43% increase in customer count, adoption is clearly on the rise. While the stock movement reflects immediate market reactions, these fundamentals provide a clearer picture of where the company is headed.

Palantir Rockets On Strong Q4: '2024 Was Only A Dress Rehearsal' For AI Growth, Says Analyst - Palantir Technologies (NASDAQ:PLTR)

Shares of Palantir Technologies Inc PLTR climbed in early trading on Tuesday, after the company reported strong fourth-quarter results. The company reported its quarterly results amid an exciting earnings season. Here are some key analyst takeaways. Morgan Stanley On Palantir Technologies Analyst Sanjit Singh upgraded the rating from Underweight to Equal-Weight, while raising the price target from $60 to $95. Palantir Technologies' revenue growth accelerated for the sixth quarter in a row, from 30% in the third quarter to 36% in the fourth quarter, Singh said in the upgrade note. "For Q1 and FY25 revenue growth, management forecasts growth of +35-36% and +31%, respectively, which is well ahead of consensus looking for mid-20% growth," he added. Palantir Technologies is executing well in the early stage of the AI cycle, "given a strong technology platform and elite engineering talent," the analyst wrote. The company's fundamentals are improving, as is the likelihood that this is sustainable, he further stated. Northland Capital Partners On Palantir Technologies Analyst Michael Latimore reaffirmed a Market Perform rating, while revising the price target to $80. Palantir Technologies' revenue growth accelerated to 36% and operating margins expanded to 45% in the fourth quarter, Latimore said in a note. Revenues of $827.5 million surpassed consensus of $781.2 million, while EPS of 14 cents per share beat expectations of 11 cents per share, he added. Management guided to first-quarter revenue of $858-$862 million, higher than consensus $799.4 million and non-GAAP operating income of $354-$358 million, above consensus of $298.1 million, the analyst stated. "Palantir stated that DeepSeek, and its low-cost powerful LLM, is making obvious what Palantir has stated all along, that the LLMs will commoditize as they get more similar over time," he further wrote. Check out other analyst stock ratings. BofA Securities On Palantir Technologies Analyst Mariana Perez Mora reiterated a Buy rating, while lifting the price target from $90 to $125. Palantir Technologies reported its full year results significantly ahead of expectations, reflecting that "2024 was only a dress rehearsal," Mora said in a note. "The company sees the world ripe for an AI and technology revolution," she added. The analyst expects the company to lead the AI revolution in both the Commercial and Defense markets. "With the AI market becoming more crowded with more commoditized solutions; we think Palantir's value proposition is only becoming more pronounced," she further wrote. Cantor Fitzgerald On Palantir Technologies Analyst Thomas Blakey maintained a Neutral rating, while raising the price target from $72 to $98. Palantir Technologies reported a strong quarterly beat and raised its guidance, Blakey said. U.S. revenues grew 52% year-on-year, with U.S. Commercial revenues up 64% and U.S. government revenues growing 45%, he added. The company's customer count rose by an impressive 43% year-on-year to 711, "which we attribute to momentum in the US as well as Palantir's AIP (Artificial Intelligence Platform), improving ability to create AI apps and agents in low code on its platform," the analyst wrote. Palantir Technologies is still in the early stages of its "journey of transforming industries and governments with its enterprise software and services offering," he further stated. PLTR Price Action: Shares of Palantir Technologies had risen by 26% to $105.71 at the time of publication on Tuesday. Read More: Spotify Posts Upbeat Results, Joins Palantir, ATI, Ferrari, Cummins And Other Big Stocks Moving Higher On Tuesday Photo: Piotr Swat/Shutterstock.com PLTRPalantir Technologies Inc$105.7326.3%Overview Rating:Speculative25%Technicals Analysis330100Financials Analysis200100WatchlistOverviewMarket News and Data brought to you by Benzinga APIs

Palantir, always in the right place at the right time

Palantir, like Nvidia, is one of those stocks adored by technophiles. The company's latest results once again provoked a fit of market hysteria, sending the stock up 22% in after-hours trading on Wall Street. All the more reason to reinforce the legend of a share that has quintupled in one year, once again pushing the reasonable limits of valuation. But who cares? The consulting group headed by Peter Thiel and Alexander Karp (the man in purple in the illustration) is built on the promise of its ability to overcome all difficulties to address the complex problems of its clients. It's a bit vague, but it seems to work. As good strategists, the company's directors have also been quick to integrate AI into their range of offerings. If you want a general overview of Palantir, read this paper. If you want an overview of what not to do with Palantir, here it is. Getting back to the news, last night the group reported full-year sales ahead of Wall Street estimates on Monday, and guided on revenues of around $3.75 billion this year. Again, better than expected. Palantir is paying just under 400 times 2024 earnings (based on a capitalization of $191 billion, excluding the rise expected at today's opening). By way of comparison, the average P/E of the Invesco QQQ ETF, the largest ETF tracking the Nasdaq, was 40.3 at year-end 2024. Palantir's P/E comes down to 200 times expected earnings in two years' time ($938 million for 2026, according to the average of analyst expectations compiled by S&P Capital IQ). That's very generous, but it doesn't stop investors from being literally hypnotized by the group. It's not unusual to see Palantir shares pop like champagne corks. In fact, it's a regular occurrence during earnings releases. To illustrate this, we used MarketScreener's charting tool, which includes news items, in this case earnings releases. Of the last nine quarterly earnings releases, seven resulted in a sharp rise: Palantir communicates extensively on its AIP solution, an artificial intelligence platform for analyzing, testing and debugging code and evaluating AI-related scenarios. In short, AI for AI. And it's working, because customers are lining up at the door: the fourth quarter saw a marked acceleration in the number of new customers. The market loves it, of course. At last night's results presentation, management strongly emphasized its ability to offer customers concrete solutions. This is Palantir's trademark. "Most organizations are currently stuck on the wrong side of the widening chasm, working on their 2, 5 and 10-year plans, which become obsolete a few days later, without ever taking With Palantir, as soon as the work begins, we offer our customers true quantified exceptionalism," enthused Ryan Taylor, one of the company's top executives. The content of the conference also confirms a major element for the investment scenario in the company: Palantir's interests are totally aligned with those of the new American administration. This is no mean feat for a company that generates over 40% of its revenues from a public sector that is about to be swept under the rug by Elon Musk's DOGE.

Palantir Crosses $100 Mark In After-Hours Trading, Hits All-Time High -- Jim Cramer Says 'Won't Let You Down' - Palantir Technologies (NASDAQ:PLTR)

Palantir Technologies Inc. PLTR is capturing Wall Street's attention, with market commentators Jim Cramer and Dan Ives making bold predictions about the company's potential in the artificial intelligence revolution. What Happened: On X, CNBC's Cramer wrote, "I predicted $100 on Palantir and I promise I won't let you down..." This comes as the stock experienced a dramatic after-hours surge of 22.75%, closing at $102.79. Wedbush Securities Managing Director Ives was even more bullish, describing Palantir's earnings as a "massive AIP growth" and a "very bullish barometer for use cases accelerating as part of the AI Revolution in 2025." Ives went as far as suggesting Palantir could become "the next Oracle" in an interview with CNBC and potentially reach a trillion-dollar market cap in the next few years. See Also: Salesforce Cuts 1000 Jobs But Ramps Up Hiring For AI Sales Roles Why It Matters: The company's fourth-quarter results provide substantial backing to these optimistic views. Palantir reported revenue of $827.52 million, beating consensus estimates, with U.S. revenue growing 52% year-over-year and commercial revenue jumping 64%. CEO Alex Karp emphasized the company's transformative potential, positioning Palantir at the center of AI's emerging landscape. The company's strong performance and forward guidance suggest these expert predictions might be more than just market hype. Price Action: Palantir's stock surged 22.75% to an all-time high of $102.79 in after-hours trading on Monday, following a 1.52% gain in the regular session, closing at $83.74, according to data from Benzinga Pro. Read Next: Bessent Freezes Consumer Financial Protection Bureau Work Leaving Lawsuits Against JPMorgan, Bank Of America, Capital One In Limbo Image Via Shutterstock Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors. PLTRPalantir Technologies Inc$102.7924.6%Overview Rating:Speculative25%Technicals Analysis330100Financials Analysis200100WatchlistOverviewMarket News and Data brought to you by Benzinga APIs

Why Palantir Stock Surged to an All-Time High on Thursday

Palantir on Thursday also announced it would integrate Grok, the chatbot from Elon Musk's xAI, into its Artificial Intelligence Platform. Palantir (PLTR) shares surged to an all-time high Thursday, extending gains earlier in the week after the company gave a stronger-than-expected outlook on growing demand for its Artificial Intelligence Platform. Shares of Palantir climbed nearly 10% to a closing record of $111.28 on Thursday after more than quadrupling in value over the past year. The stock led gains in the Nasdaq 100 and was one of the best-performing stocks in the S&P 500 Thursday. Several analysts have raised their price objectives for the stock since Palantir on Monday gave a strong forecast for 2025, with Bank of America, Citi, UBS, Wedbush, Morgan Stanley and others boosting their targets. Palantir on Thursday also announced it would integrate Grok, the chatbot from Elon Musk's xAI, into its Artificial Intelligence Platform. In a note to clients Tuesday, Bank of America analysts suggested Elon Musk's new Department of Government Efficiency and the Trump administration's focus on artificial intelligence could present a "major opportunity" for Palantir.

Palantir Might Be The Greatest AI Stock

Listen on the go! A daily podcast of Wall Street Breakfast will be available by 8:00 a.m. on Seeking Alpha, iTunes, Spotify. While Nvidia (NVDA) and other Magnificent 7 members have grabbed headlines over the past year, one AI player has stood ahead of the pack in terms of sheer returns. Palantir (PLTR) is up a whopping 514% in the last 12 months, and just took its next leg up in AH trading on Monday to top the $100 level for the first time. Stellar earnings from the AI software analytics company were responsible for the nearly 23% pop, while it projected bumper numbers for 2025 amid accelerating AI adoption. You called it! Back in September 2024, subscribers to Seeking Alpha's Wall Street Breakfast were asked to name the most unknown stock in the market poised for outsized returns. Palantir was the most popular reply - and that was when the stock was trading at $37. In the first week of the new year, WSB followed up with a survey on the best AI stock to watch in 2025 - and Palantir was the top favorite again, as it changed hands at $70. At those levels, investors who bought in would have seen gains of 178% and 47%, respectively, over the span of just months or weeks. Palantir (PLTR) also recently joined both the S&P 500 (SP500) and Nasdaq 100 (NDX), giving it exposure to broader market ETFs and products. Meanwhile, a deepening relationship with the U.S. Department of Defense resulted in government sales exploding 45% to $343M in the latest quarter, while U.S. commercial revenue skyrocketed 64% to $214M. Palantir's Artificial Intelligence Platform (AIP), which helps companies integrate complex AI models for analytics and insights, has played a pivotal role in inking the new contracts, while efficiency initiatives and likely increases in defense spending by the Trump administration should ring the register for the foreseeable future. "With the proliferation of AI models, the raw AI labor supply is exploding," Chief Revenue Officer Ryan Taylor said on the earnings call. "While everyone else is focused on the model supply side, we're transforming AI into a measurable stream of high-value finished goods and services. The result, the rapid emergence of quantified exceptionalism for organizations able to unlock the potential of these commoditized models through AIP." More from the C-Suite: "We are still in the earliest stages, the beginning of the first act, of a revolution that will play out over years and decades," CEO Alex Karp wrote in a letter to shareholders. "This is not an incremental advance or marginal acceleration of our business. This is a new phase. The business we have built has now developed its own internal momentum and strength, its own interior life and forms of untamed organic growth, with the output that we are seeing far surpassing what we are investing. A software juggernaut has indeed emerged."

Is Palantir Proving to Be the Dark Horse AI Stock?

Having beaten analyst expectations in Q3, Palantir did the same for Q4. This time the earnings per share (EPS) of $0.11 was surpassed by $0.14. Likewise, the company's revenue of $828 million exceeded the LSEG forecast of $776 million. Year-over-year, Palantir's revenue generation increased by 36% in Q4, an improvement from 30% in Q3. Indicatively, the commercial division showed greater revenue acceleration, by 64% yoy to $214 million. However, Palantis government contracts still make the bulk of sales at $343 million, which is a 45% yoy uptick. Overall, Palantir reported $2.87 billion in revenue for full year 2024, of which net income increased 16% from 2023 to $462.2 million. More importantly from a valuation aspect, Palantir forecasted better than expected sales for 2025, setting in the $3.74 - $3.76 billion range, above the average forecast of $3.52 billion. In the quarter's shareholder letter, Palantir CEO Alex Karp likened the company to a "software juggernaut", noting that: "We have the products and reach of an established incumbent and the speed, growth, and agility of an insurgent startup." But how exactly is Palantir's enterprise software different from offerings of dozens of other publicly traded companies with drastically lower P/E ratios? Palantir: Hegemony Technology Just as Twitter Files showed coordinated collusion between the government and Big Tech to curtail the 1st amendment, the recent DOGE-powered USAID revelations showed that much of social structure is a top-down social engineering project. This not only extends to global politics but to culture and media as well. For Tokenist readers who absorbed the coverage of DeepSeek, this is no surprise. It is embedded in any governance system to expand and maintain control. When AI emerged as viable, there was an immediate rush to tighten the bonds between the government and Big Tech in order to ensure "AI safety", which is largely related to unified and automated narrative control. With President Trump resuming his 2nd term, in alliance with Elon Musk, there is now more emphasis on a robust technology for governance systems. And Palantir is at the center of it. Together with Palantir CEO Alex Karp and Anduril co-founder Palmer Luckey (self-described "radical Zionist"), Elon Musk's DOGE efforts appear to be the backbone of the new realignment of networked power. Palantir is essential in this endeavor as an AI-powered platform that not only makes Big Data relevant, but makes it possible to organize data to deliver efficient decision making. In the August coverage of Palantir, when PLTR stock was only $26.95, we described this process pipeline as follows: "Palantir's clients receive greater understanding of how their own organizations work, instead of just relying on vague notions of how they work." At present, it seems that the Trump admin views much of the federal apparatus as a liability that serves its own ends. It is then easy to see how Palantir's tech will be deployed to ascertain the relevance of current governance systems. "On the government side, Palantir's vision is very well aligned with the current administration," D.A. Davidson analyst Gil Luria. In turn, it is as easy to see how Palantir may become even more relevant than Microsoft (NASDAQ:MSFT). It is also notable that Palantir's Chief Revenue Officer Ryan Taylor recently discouraged commercial clients from using Chinese AI models like DeepSeek, while noting that government contractors will likely be prohibited from using them. In other words, investors should view Palantir as a likely monopolist in the emerging automated governance arena. This would not only make PLTR an AI stock, but one with an edge. *** Neither the author, Tim Fries, nor this website, The Tokenist, provide financial advice. Please consult our website policy prior to making financial decisions.

Meet the 1 Number From Palantir That May Keep This Supercharged Stock Soaring | The Motley Fool

Palantir Technologies (PLTR -0.39%) recently announced mind-blowing earnings results, from double-digit revenue growth across businesses to record deal values as well as numbers of deals. The software company has built its business over more than 20 years, but in recent times, Palantir's strength in applying artificial intelligence (AI) to real-world problems has helped demand explode higher. Both government and commercial customers have flocked to Palantir's Artificial Intelligence Platform (AIP), a system that puts AI to work on the customer's data to aggregate and make the best use of it. The results can be game changing, leading to better decisions, new strategies, and completely different ways of organizing how business is done. In the fourth-quarter report, good news seemed to flow from every angle -- but one number in particular, a number that's often overlooked, really gives us reason to cheer. That's because this particular number shows the company is hitting it out of the park when it comes to balancing growth and profitability. And that bodes well for long-term earnings and share price performance. Let's meet this one number from Palantir that could keep this supercharged stock soaring. So, first a little background on Palantir and its path so far. Palantir, as mentioned, offers a software platform that helps customers harness the power of their own data and apply it to improve operations. The company was originally most associated with government contracts, but as demand for AI picked up, more and more commercial customers started to check out Palantir's AIP. The result has been tremendous growth. Just four years ago, Palantir had 14 U.S. commercial customers. Today, that number has reached 382. On top of that, in the recent quarter, Palantir closed a record $803 million of U.S. commercial total contract value -- that represents a 134% increase year over year. How are commercial customers using Palantir's AIP? A great example is Rio Tinto. The mining and metals giant recently extended its work with Palantir for another four years because AIP is offering the company a chance to access its unstructured data and tackle problems that before seemed out of reach. All this has helped Palantir increase revenue and profit, even reaching its highest quarterly profit ever in the third quarter of the year. But it's one particular number, in the fourth-quarter earnings report, that stands out and could keep the good times rolling for Palantir. I'm talking about Palantir's "Rule of 40" score. The Rule of 40 is a financial metric applied to software-as-a-service (SaaS) companies to evaluate how well they're balancing growth with profitability. This number should be 40% or higher in order to be considered a solid SaaS company. So the idea is if a company is at or above this level, it's not only growing, but it's turning that growth into profit too -- so you've got the best of both worlds. In the recent quarter, Palantir's Rule of 40 score reached an eye-popping 81%. During the earnings call, chief executive officer Alex Karp said he considered that one of the company's greatest numbers of the period. To put the accomplishment into perspective, we can take a look at 2021 research from McKinsey & Co. that found that hardly one-third of software companies reach the Rule of 40, and fewer are able to maintain it. In fact, the research showed companies only surpassed the rule 16% of the time. So, it's clear that Palantir, which has greatly exceeded the rule every quarter last year, and in particularly in the recent quarter, truly stands out from the crowd. Now let's get back to my point about stock performance. The shares already climbed 340% last year, but there's still plenty of room to run, considering how Palantir is managing growth and profit. Palantir's ability to top the Rule of 40 shows this company is expertly balancing the two. And the fact that it's topping the Rule of 40 by so much suggests this is sustainable, too, as it's well beyond that minimum level -- this offers some wiggle room during quarters that may be more difficult. So, Palantir's Rule of 40 accomplishment is something investors shouldn't ignore. This one particular number highlights the company's ability to keep delivering solid earnings -- and that could keep this top stock roaring higher.

Palantir shares pop 10% after company posts strong earnings and outlook

Alex Karp, chief executive officer of Palantir Technologies Inc., during a Bloomberg Technology television interview during the FoundryCon event in Palo Alto, California, US, on Thursday, March 7, 2024. Palantir shares surged more than 10% in extended trading on Monday after the software company reported fourth-quarter earnings and revenue that surpassed Wall Street's estimates. Here's how Palantir did versus estimates from analysts polled by LSEG: Along with the fourth-quarter beat, Palantir offered better-than-expected guidance. The company said it expects revenue of between $858 million and $862 million, ahead of an LSEG estimate of $799 million. For the full year, Palantir forecast sales of $3.74 billion to $3.76 billion, topping the $3.52 billion average estimate. Palantir is a major provider of software and technology services to defense agencies. CEO Alex Karp attributed much of the company's growth to its use of artificial intelligence. "Our business results continue to astound, demonstrating our deepening position at the center of the AI revolution," Karp said in the earnings release. "Our early insights surrounding the commoditization of large language models have evolved from theory to fact." Revenue increased 36% in the quarter from $608.4 million a year earlier. For the full year, sales increased 29%. Karp said in a letter to shareholders that the momentum the company is experiencing across its commercial and government segments is "unlike anything that has come before" Palantir said its U.S. commercial revenue grew 64% from a year ago to $214 million, while U.S. government revenues rose 45% year over year to $343 million. "We are still in the earliest stages, the beginning of the first act, of a revolution that will play out over years and decades," Karp said, adding that the company has "been preparing for this moment diligently for more than twenty years." The results follow a massive rally in Palantir's stock, which soared 340% in 2024. The company joined both the S&P 500 and Nasdaq 100 last year. Palantir has benefited from the boom in generative AI following the release of OpenAI's ChatGPT in late 2022. In an interview with CNBC last week, Karp said that Palantir is poised to lead the transformation of American companies, and he asserted that bolstering the U.S. is its "primary objective." Karp also responded to recent worries surrounding the ascent of China's DeepSeek, which pummeled financial markets early last week and spurred fears about the hefty spending megacaps have funneled into AI infrastructure and China's tech advancements. "Technology is not inherently good," he told CNBC's Sara Eisen in the interview. "We have to acknowledge that, but that also just means we have to run harder, run faster, have an all-country effort."

Palantir soars more than 23% as AI powers strong earnings and guidance

Alex Karp, CEO of Palantir Technologies, poses beside the company's logo ahead of an interview with Reuters in the Alpine resort of Davos, Switzerland, on May 23, 2022. Palantir surged more than 23% in premarket trading Tuesday after reporting stronger-than-expected fourth-quarter results and guidance driven by ongoing artificial intelligence gains. The Denver-based software company posted adjusted earnings of 14 cents per share and $828 million in revenue. That topped the 11 cents per share and revenues of $776 million expected by analysts polled by LSEG. Palantir also issued upbeat guidance for the current quarter and full year. In the first quarter, the company forecast revenues between $858 million and $862 million. The LSEG estimate called for $799 million. The company projects sales of $3.74 billion to $3.76 billion, ahead of a $3.52 billion estimate. The software company has been on a record run, surging 340% in 2024 as its AI platform gained traction amid ongoing investor excitement around the technology trend. Palantir provides software and technology services and is most widely known for its work with defense agencies. In a letter to shareholders, CEO and co-founder Alex Karp called the momentum within its commercial and government segments "unlike anything that has come before."

Palantir Is 'Making America More Lethal' As Alex Karp-Led Company Secures $1.8 Billion in AI Contracts -- US Commercial Customer Base Surges 73% - Palantir Technologies (NASDAQ:PLTR)

Palantir Technologies Inc. PLTR delivered a blockbuster fourth-quarter performance, positioning itself as a critical player in the artificial intelligence revolution with a 36% year-over-year revenue increase and aggressive growth across commercial and government sectors. What Happened: The company reported fourth-quarter revenue of $827.52 million, significantly beating analyst estimates. U.S. commercial revenue soared 64% year-over-year, while the company's total customer count expanded 43%, reflecting robust market demand for its AI platforms. CEO Alex Karp emphasized the company's transformative potential, stating Palantir is "making America more lethal" through its unique AI integration strategy. The company closed $1.8 billion in total contract value, with 32 deals exceeding $10 million each. Notably, Palantir's U.S. commercial segment saw unprecedented growth, expanding its customer base by 73% and achieving a 54% growth rate. The company's proprietary "ontology" technology enables enterprises to effectively implement AI solutions, differentiating it from competitors. See Also: Cathie Wood's Ark Invest Dumps Lockheed Martin Shares, Swoops Up Stock Of This Satellite Phone Provider Why It Matters: Financial analysts are bullish on Palantir's prospects. Wedbush Securities Managing Director Dan Ives described the earnings as a "massive AIP growth" and suggested the company could become "the next Oracle" with the potential for a trillion-dollar market capitalization. The company's forward guidance indicates continued momentum, with expected 2025 full-year revenue between $3.74 billion and $3.76 billion. Palantir also anticipates positive operating and net income in each quarter of 2025. Price Action: Palantir's stock surged 22.75% to an all-time high of $102.79 in after-hours trading on Monday, following a 1.52% gain in the regular session, closing at $83.74, according to data from Benzinga Pro. Read Next: Mohamed El-Erian Flags Market Jitters As Trump Tariff Pause On Canada Triggers Currency Swings -- Larry Summers Warns Of Trade Fallout Image Via Shutterstock Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors. PLTRPalantir Technologies Inc$102.7924.6%Overview Rating:Speculative25%Technicals Analysis330100Financials Analysis200100WatchlistOverviewMarket News and Data brought to you by Benzinga APIs

PLTR Stock Surges Over 17% In Pre-Market After CEO Alex Karp Touts 'Untamed Organic Growth' In AI Demand Palantir Stocks Surge over 17% In Pre-Market After CEO Karp Touts 'Untamed Organic Growth' In AI Demand - Invesco QQQ Trust, Series 1 (NASDAQ:QQQ), Palantir Technologies (NASDAQ:PLTR)

Palantir Technologies Inc. PLTR shares surged by 16.7% in pre-market on Tuesday as the company's CEO, Alex Karp, emphasized a surge in demand for its artificial intelligence software, describing it as "untamed organic growth." What Happened: The Denver-based company's shares ended 1.52% higher at $83.74 on Monday after which the company reported its fourth-quarter results. This surge came after Palantir forecasted revenue of $3.75 billion in 2025, surpassing analysts' estimates. The adjusted operating income is expected to be around $1.56 billion, according to a statement released on Monday. Analysts, on average, projected revenue of $3.54 billion and an operating profit of $1.37 billion. The company's shares have been on an upward trajectory, with a 393.36% increase over the past year and a 9.71% increase year-to-date. Palantir stock also reached a record intraday high of $85.22 on Jan. 31, 2025. The strong performance is attributed to the company's consistent ability to meet or exceed analyst estimates for six consecutive quarters. SEE ALSO: Palantir Sounds Alarm On China's DeepSeek, Citing National Security Threat -- But Won't Drop Clients Who Use It Why It Matters: The surge in Palantir's shares follows a series of positive developments for the company. On Monday, the company reported fourth-quarter revenue of $827.52 million, surpassing the consensus estimate of $775.91 million. This marked the sixth consecutive quarter in which Palantir met or exceeded analyst estimates. Palantir reported a 64% year-over-year increase in its U.S. commercial revenue, reaching $214 million, while its U.S. government revenue grew 45% to $343 million. The company anticipates U.S. commercial sales to expand by at least 54%, reaching approximately $1.08 billion in 2025. During the company's quarterly earnings call on Monday, CEO Karp expressed optimism about the disruption caused by Elon Musk-led DOGE. He believes it will benefit both the U.S. and Palantir, which holds major government contracts. Additionally, market commentators Jim Cramer and Dan Ives have made bullish predictions about Palantir's potential in the artificial intelligence revolution. Cramer cheered as the stock crossed a $100 price target, while Ives referred to the company as "the next Oracle in the AI boom." Price Action: Shares soared over 16.7% to $97.76, during the publication of this article, while the exchange-traded fund tracking Nasdaq 100, Invesco QQQ Trust, Series 1 QQQ edged 0.19% lower to $517.13. READ MORE: Palantir Technologies Options Trading: A Deep Dive into Market Sentiment Image Via Shutterstock Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors. PLTRPalantir Technologies Inc$99.1318.4%Overview Rating:Speculative25%Technicals Analysis330100Financials Analysis200100WatchlistOverviewQQQInvesco QQQ Trust, Series 1$517.45-0.13%Market News and Data brought to you by Benzinga APIs

Palantir stock soars more than 26% after AI-driven earnings

What DeepSeek's AI breakthrough means for Meta, OpenAI, and Nvidia The company's stock was up by 23% during pre-market trading after it delivered better-than-expected fourth quarter results. At the market open, Palantir stock was up by 22%. The company, which builds software for big data analytics companies, reported revenue of $828 million for the fourth quarter -- a 36% jump year over year, and a 14% increase from the previous quarter. Wall Street was expecting $775.8 million, according to analysts' estimates compiled by FactSet (FDS-0.37%). U.S. revenue grew 52% from the previous year to $558 million, Palantir said -- a 12% increase quarter over quarter. Palantir set first quarter revenue guidance between $858 million and $862 million. Analysts are expecting $852 million quarter ending in March, according to FactSet. For the full year, U.S. revenue was $1.9 billion -- a 38% increase from 2023, according to Palantir, while overall revenue grew 29% to $2.87 billion. In 2025, Palantir expects revenue of between $3.74 billion and $3.76 billion. "Our business results continue to astound, demonstrating our deepening position at the center of the AI revolution," Palantir chief executive Alex Karp said in a statement. "Our early insights surrounding the commoditization of large language models have evolved from theory to fact." Revenue from the U.S. government grew 45% from the previous year to $343 million in the quarter ended in December, according to Palantir. In 2024, U.S. government revenue grew 30% to $1.2 billion from the previous year. In August, Palantir and Microsoft (MSFT+0.11%) announced that they were deepening their partnership to provide secure cloud, AI, and analytics capabilities to U.S. defense and intelligence agencies. Through the partnership, agencies will have access to Microsoft's Azure cloud compute and large language models, or LLMs, including OpenAI's GPT-4, through its Azure OpenAI Service that will be integrated with Palantir's AI Platforms (AIP). Palantir's products will be deployed in Microsoft's Azure cloud for government, including clouds for top secret use.

Palantir shares jump on upbeat revenue outlook as businesses adopt AI

(Reuters) - Palantir shares rallied over 18% in premarket trading after it forecast upbeat annual revenue fueled by strong demand for its software and data analytics services from businesses racing to adopt generative AI. Palantir, which provides services to governments such as software that visualizes army positions, is set to gain about $35 billion in market capitalization, at current share price levels of $99.31. "It's yet another company to be riding the AI wave, benefiting from multiple industries pressing the button on big investment to improve their technological capabilities," said Russ Mould, Investment Director at AJ Bell. Co-founded by tech billionaire Peter Thiel, Palantir's platform AIP, which is used to test, debug code and evaluate AI-related scenarios, has benefited from businesses that are looking to deploy generative AI technology. "Palantir is the Michael Jordan of AI stocks right now, not only capturing investors' imagination but delivering game-winning shots when it counts," said Matt Britzman, Senior Equity Analyst at Hargreaves Lansdown. Meanwhile, the company's Chief Revenue Officer Ryan Taylor said they would discourage commercial clients from using DeepSeek's AI models, but if customers still choose to do so Palantir would continue to work with them. White House press secretary Karoline Leavitt had said last week that U.S. officials were looking at the national security implications of DeepSeek. With U.S. President Donald Trump imposing new tariffs, Taylor said it could also help drive demand for the company's analytics services centered around supply chain and logistics management. At least nine analysts raised their price targets on the stock, according to data compiled by LSEG, while Morgan Stanley raised its rating to 'equalweight' from 'underweight' and sees Palantir as 'a powerful AI story'. Palantir's 12-month forward price-to-earnings ratio stands at 160.93, compared to Snowflake's 181.89 and Datadog's 67.46. (Reporting by Siddarth S in Bengaluru; Editing by Krishna Chandra Eluri)

AI Stocks Are Rallying After The Bell: What's Going On? - Palantir Technologies (NASDAQ:PLTR)

"We are still in the earliest stages ... of a revolution that will play out over years and decades," Palantir CEO Alex Karp says. Several AI-linked stocks are trading higher in Monday's after-hours session following Palantir Technologies Inc PLTR shares rocketing higher on based on blowout earnings. Here's what you need to know. What Happened With PLTR: Palantir beat analyst estimates on the top and bottom lines, reporting fourth-quarter revenue of $827.52 million and earnings of 14 cents per share. Total revenue grew 36% year-over-year driven by strong growth in the U.S. of 52%. U.S. Commercial revenue jumped 64% year-over-year and U.S. Government revenue increased 45% year-over-year. Palantir's customer count grew 43% year-over-year. The company delivered $517 million in adjusted free cash flow and ended the quarter with $5.2 billion of cash, equivalents and short-term U.S. treasury securities. "We are still in the earliest stages, the beginning of the first act, of a revolution that will play out over years and decades," Palantir CEO Alex Karp said in a letter to shareholders. "This is not an incremental advance or marginal acceleration of our business. This is a new phase. And the momentum we are seeing across sectors, both commercial and government, is unlike anything that has come before." Check This Out: Palantir Q4 Earnings: Revenue Beat, EPS Beat, US Revenue Up 52%, Customer Count Up 43%, Strong Guidance The upside surprise and optimistic commentary from the company appears to be driving other AI-related names higher after the bell. Tempus AI Inc TEM has seen increased attention in recent weeks after former House Speaker Nancy Pelosi disclosed the purchase of several call options. Tempus AI shares were up more than 7% in extended trading at last check. Other AI-related names including C3.ai Inc AI, BigBear.ai Holdings Inc BBAI and SoundHound AI Inc SOUN were also moving higher following Palantir's quarterly report. C3.ai shares were up about 4.5%, BigBear.ai shares were up about 5.5% and SoundHound shares were up about 2%. NVIDIA Corp NVDA, which has been the biggest beneficiary of the AI boom to date, was also moving higher, last up about 1.35% in after-hours trading. Palantir shares were up more than 22% in after-hours at the time of publication Monday. Read Next: Options Corner: Tempus AI Stock Soars On Nancy Pelosi's Call Options -- But Should Investors Follow? This illustration was generated using artificial intelligence via Midjourney. PLTRPalantir Technologies Inc$102.6624.4%Overview Rating:Speculative25%Technicals Analysis330100Financials Analysis200100WatchlistOverviewAIC3.ai Inc$32.583.92%BBAIBigBear.ai Holdings Inc$4.495.89%NVDANVIDIA Corp$118.11-1.63%SOUNSoundHound AI Inc$14.512.54%TEMTempus AI Inc$65.9815.0%Market News and Data brought to you by Benzinga APIs

DeepSeek has new competition and it's 'Michael Jordan of AI stocks'

Palantir provides services to governments such as software that visualizes army positionsPalantir shares rallied over 18 per cent in premarket trading after it forecast upbeat annual revenue fueled by strong demand for its software and data analytics services from businesses racing to adopt generative AI, as per a report. Palantir, which provides services to governments such as software that visualizes army positions, is set to gain about $35 billion in market capitalization, at current share price levels of $99.31, Reuters reported. "It's yet another company to be riding the AI wave, benefiting from multiple industries pressing the button on big investment to improve their technological capabilities," said Russ Mould, Investment Director at AJ Bell. Co-founded by tech billionaire Peter Thiel, Palantir's platform AIP, which is used to test, debug code and evaluate AI-related scenarios, has benefited from businesses that are looking to deploy generative AI technology. "Palantir is the Michael Jordan of AI stocks right now, not only capturing investors' imagination but delivering game-winning shots when it counts," said Matt Britzman, Senior Equity Analyst at Hargreaves Lansdown. Meanwhile, the company's Chief Revenue Officer Ryan Taylor said they would discourage commercial clients from using DeepSeek's AI models, but if customers still choose to do so Palantir would continue to work with them. White House press secretary Karoline Leavitt had said last week that U.S. officials were looking at the national security implications of DeepSeek. With U.S. President Donald Trump imposing new tariffs, Taylor said it could also help drive demand for the company's analytics services centered around supply chain and logistics management. At least nine analysts raised their price targets on the stock, according to data compiled by LSEG, while Morgan Stanley raised its rating to 'equalweight' from 'underweight' and sees Palantir as 'a powerful AI story'. Palantir's 12-month forward price-to-earnings ratio stands at 160.93, compared to Snowflake's 181.89 and Datadog's 67.46. Q1. What is Palantir's 12-month forward price-to-earnings ratio? A1. Palantir's 12-month forward price-to-earnings ratio stands at 160.93, compared to Snowflake's 181.89 and Datadog's 67.46. Q2. What is Palantir share price? A2. Palantir, which provides services to governments such as software that visualizes army positions, is set to gain about $35 billion in market capitalization, at current share price levels of $99.31.

Palantir forecasts 2025 revenue above estimates on AI strength

(Reuters) - Palantir Technologies forecast first-quarter and annual revenue above Wall Street estimates on Monday, betting on robust demand for its software and data analytics services from companies doubling down on generative AI adoption. Businesses pushing to deploy the most sophisticated generative artificial intelligence tech have helped drive sales for Palantir's AI platform, AIP, which is used to test, debug code and evaluate AI-related scenarios. The Denver-based company expects fiscal 2025 revenue between $3.74 billion and $3.76 billion, above the average analyst estimate of $3.52 billion, according to data compiled by LSEG. Revenue is being driven by both new customers and the expansion of those customers with AIP, Palantir's Chief Revenue Officer Ryan Taylor told Reuters. The company's customer count grew 43% in the fourth quarter. Chinese startup DeepSeek's AI models that it claimed can match or even outperform Western rivals at a fraction of the cost had stirred doubts about the United States' lead in the technology and the high costs of GenAI development. Palantir would discourage its clients from using DeepSeek, Taylor said, adding that U.S. government customers would be unable to use the Chinese company's models. Co-founded by billionaire Peter Thiel, Palantir derived more than 40% its fourth-quarter sales from the U.S. government but has been working to reduce its dependence on government spending. Palantir expects revenue derived from companies in the U.S. to grow at least 54% in 2025 to more than $1.80 billion. The company forecast March-quarter revenue between $858 million and $862 million, compared with estimates of $799.4 million. Expanded tariffs ordered by U.S. President Donald Trump on Saturday could also help drive demand for Palantir's analytics services centered around supply-chain and logistics management, Taylor said. On an adjusted basis, Palantir earned 14 cents per share in the fourth quarter, beating estimates of 11 cents. (Reporting by Arsheeya Bajwa in Bengaluru; Editing by Shounak Dasgupta)

Palantir projects 31% revenue growth for 2025 amid accelerating AI adoption (NASDAQ:PLTR)

Earnings Call Insights: Palantir Technologies (NASDAQ:PLTR) Q4 2024 Management View CEO Alex Karp highlighted significant growth in the U.S. market, with U.S. commercial revenue growing 54% year-over-year and government revenue up 45% year-over-year, demonstrating strong adoption across sectors. He emphasized Palantir's unique positioning in the AI revolution, stating, "We

Palantir Gives Strong 2025 Outlook Fueled by 'Untamed' AI Demand

Palantir Technologies Inc. gave a full-year revenue forecast that exceeded analysts' estimates, thanks to what Chief Executive Officer Alex Karp described as "untamed organic growth" in demand for its artificial intelligence software. Sales will be about $3.75 billion in 2025, the Denver-based company said Monday in a statement. Adjusted operating income will be about $1.56 billion. Analysts, on average, projected revenue of $3.54 billion and operating profit of $1.37 billion.