Palantir's Stock Soars to Record Highs Amid AI Boom and Geopolitical Shifts

Palantir Stock Closes at Record High as Tariff Optimism Drives Tech Rally

The AI darling's stock is up more than 70% in 2025 and over 500% from a year ago. Shares of Palantir (PLTR) closed Tuesday at an all-time high as optimism about easing tariffs has driven a broad market rally that has lifted artificial intelligence stocks. The company's stock rose 8% to finish just above $128, though it was even higher intraday; the stock established both closing and intraday records. The latest surge comes after the U.S. and China agreed Monday to slash their tariffs on one another for 90 days. (Read Investopedia's live coverage of today's market action, which included a 1.6% rise for the tech-focused Nasdaq Composite, here.) Tuesday's gains more than made up for losses early last week following quarterly results from that may not have lived up to investors' lofty expectations. Despite beating Wall Street's expectations and raising its full-year outlook, Palantir's shares dropped 12% the following day. Palantir stock is up more than 70% in 2025 and over 500% from a year ago. On Monday, Bank of America analysts called the firm a "market definer" for companies looking to leverage artificial intelligence. The bank said Palantir's recent deal with the North Atlantic Treaty Organization, which came despite pressure on the body to buy from a European firm, "hints at the superior capabilities [the company] can provide customers." Their price target, $150, is well above the Visible Alpha consensus near $95.

Palantir (PLTR) Stock $300B Value: Alex Karp Bets On Saudi AI - Palantir Technologies (NASDAQ:PLTR)

Palantir Technologies Inc PLTR smashed through a major milestone Tuesday, topping a $300 billion market cap for the first time ever after hitting an all-time high of $130.60 during the session. That's not a typo. Just two years ago, Palantir's valuation sat at $20 billion. One year ago? $49 billion. Now? A staggering $302.3 billion - nearly an eightfold increase in just 24 months. The AI-driven defense tech firm is now one of Wall Street's most explosive comeback stories. Behind The Cocktail Of Bullish PLTR Stock Technicals PLTR stock has surged 497% over the past year, including a 70% rally in 2025 alone and a 38% jump in just the past month. Behind the momentum is a cocktail of bullish technicals, AI-driven optimism, and some headline-grabbing confidence from CEO Alex Karp. Chart created using Benzinga Pro Technically, PLTR stock is firing on all cylinders. It trades above its eight, 20, 50, and 200-day simple moving averages. The Relative Strength Index (RSI) of 68.11 points to healthy bullish momentum without being overbought, while a Moving Average Convergence Divergence (MACD) indicator of 8.38 confirms strong buying pressure. Read Also: Tech Traders Are Speed-Dating Volatility And Palantir Is The Perfect Case Study Saudi = Engineering Excellence, While Europeans Have Given Up Speaking at the Saudi-U.S. Investment Forum on Tuesday, Karp lavished praise on Saudi engineers for their "engineering excellence" and forward-looking approach to AI. He didn't mince words about the other side of the Atlantic either. "Europe, where, you know, it's like people have given up," Karp said, highlighting the continent's sluggish AI adoption and over-regulation. The comments, made as President Donald Trump and a cadre of U.S. tech executives arrived in Riyadh, reinforced Palantir's growing presence in global AI conversations - particularly in geopolitically strategic regions like the Middle East. Karp's bold bets, both strategic and rhetorical, are paying off. And as Palantir crosses into mega-cap territory, the message to skeptics is clear - AI is war tech, and Palantir intends to lead both fronts. Read Next: Cathie Wood Dumps Palantir As Stock Touches Peak Prices, Bails On Soaring Flying-Taxi Maker Archer Aviation Photo: Shutterstock PLTRPalantir Technologies Inc$130.501.87%Stock Score Locked: Want to See it? Benzinga Rankings give you vital metrics on any stock - anytime. Reveal Full ScoreEdge RankingsMomentum99.39Growth88.71Quality-Value2.43Price TrendShortMediumLongOverviewGot Questions? AskWhich defense tech firms could rival Palantir?How will AI adoption in Europe impact tech stocks?Which Saudi companies will benefit from AI partnerships?How might Palantir's growth affect competitors?What emerging markets could capitalize on AI tech?Will Palantir's success inspire other tech stocks?How could geopolitical tensions influence AI investments?What investment strategies should target AI-driven firms?Are SMEs in Europe missing AI opportunities?Which venture capital firms might invest in AI startups?Powered ByMarket News and Data brought to you by Benzinga APIs

What's Going On With Palantir Stock? - Palantir Technologies (NASDAQ:PLTR)

Palantir Technologies Inc. PLTR shares are trading slightly lower Thursday at $128.43 as of the time of writing, but remain near record highs after a nearly 500% rally over the past year. What To Know: The stock is up more than 32% in the last month alone, significantly outperforming broader indexes like the S&P 500, which gained around 9% over the same period, and even broader technology funds, like the SPDR Select Technology ETF XLK, which gained approximately 17%. The move has been driven by strong investor demand for AI-related stocks and Palantir's position as a key player in government and enterprise analytics. The company reported $1.3 billion in free cash flow last year and has continued to secure new contracts in both public and private sectors, fueling significant revenue growth in recent years. The company's current market cap stands at around $300 billion. Palantir reported results for the first quarter last week, beating estimates on the top and bottom lines for the seventh consecutive quarter. Total revenue was up 39% year-over-year as U.S. revenue grew 55% year-over-year to $628 million. U.S. Commercial revenue grew 71% year-over-year to $255 million and U.S. Government revenue climbed 45% year-over-year to $373 million. Palantir's customer count grew 39% year-over-year and 8% on a quarter-over-quarter basis. The company closed out the quarter with $5.4 billion of cash, cash equivalents and short-term U.S. treasury securities. Palantir guided for second-quarter revenue in the range of $934 million to $938 million versus estimates of $899.12 million. The company also raised its full-year guidance as CEO Alex Karp highlighted a "tectonic shift" in the adoption of the company's software. "We are delivering the operating system for the modern enterprise in the era of AI," Karp said. Despite a slight pullback on Thursday, the stock continues to reflect investor confidence in the company's AI-driven growth strategy, hitting new all-time highs earlier this week. PLTR Price Action: Palantir shares were down 1.36% at $128.43 at the time of publication Thursday, according to Benzinga Pro. Read Next: Wall Street Wavers As UNH Tumbles, Foot Locker Soars: What's Driving Markets Thursday? Image via Shutterstock. PLTRPalantir Technologies Inc$128.23-1.50%Stock Score Locked: Want to See it? Benzinga Rankings give you vital metrics on any stock - anytime. Reveal Full ScoreEdge RankingsMomentum99.40Growth88.73Quality-Value2.37Price TrendShortMediumLongOverviewXLKSPDR Select Sector Fund - Technology$234.09-0.02%Market News and Data brought to you by Benzinga APIs

Think Palantir Stock Is Too Expensive? Here Are 1.16 Million Reasons to Reconsider. | The Motley Fool

Bears continue to cite its valuation as the primary reason to avoid Palantir stock. Not everyone agrees. The dawn of artificial intelligence (AI) began just over two years ago, and the paradigm shift in technology has been stark. These next-generation AI systems have vast potential to rewrite the rules of productivity and streamline everyday tasks in the process. The adoption of the technology is still in the early innings but is already having a pronounced impact on the companies at the forefront of the AI revolution. Arguably, no company exemplifies the vast potential of these advanced systems more than Palantir Technologies (PLTR -1.65%). The company has been at the forefront of AI and data analytics for more than 20 years and was quick to recognize the game-changing potential of generative AI, developing advanced AI tools that have taken enterprise companies by storm. The one hurdle that continues to keep some investors on the sidelines is Palantir's valuation. While the stock certainly sells for a premium, some believe the opportunity far outweighs the risk. Before we focus on its valuation, it's worth reviewing how Palantir became a poster child of the AI revolution and a battleground stock in the process. Palantir has been one of the early beneficiaries of the accelerating adoption of AI and with good reason. The company leveraged its decades of experience in the field to develop its Artificial Intelligence Platform, or AIP, which integrates deeply into existing company systems to enable businesses and governments to make data-driven decisions. Palantir has long believed that its software is so good it sells itself. Unfortunately, many business leaders lack the necessary experience and expertise to effectively implement AI systems. To counter this reality, Palantir began hosting "boot camps." During these intensive sessions, which last from one to five days, executives are paired with Palantir engineers who educate them on the inner workings of AIP and help them address real-world problems. Put another way, instead of giving them a fish, Palantir teaches them to fish. Not only do these leaders develop the tools necessary to deploy AI in their respective businesses, but they also get to see firsthand how the technology pays for itself in short order. There's no denying that Palantir's strategy has been wildly successful. In the first quarter, revenue of $884 million jumped 39% year over year. This resulted in adjusted earnings per share (EPS) of $0.13, which surged 63%. As impressive as that is, it only tells part of the story. Palantir's U.S. commercial segment, which includes AIP, grew 71% year over year and 19% quarter over quarter, now accounting for nearly one-third of all sales. At the same time, the segment's customer count grew 65%, while its remaining deal value -- or contractually obligated sales not yet included in revenue -- soared 127%. This tremendous business success has been reflected in Palantir's stock price, which is up 522% over the past year as of this writing, and up more than 1,250% since its IPO in late 2020. With the soaring stock price has come a commensurate increase in its valuation, and there's no denying it trades for a premium. Palantir is currently selling for 563 times earnings 104 times sales, so the stock isn't for the faint of heart. Yet despite that lofty price tag, one Palantir insider is loading up on shares. In a regulatory filing, Palantir revealed that its former chief accounting officer (CAO), Heather Planishek, bought 10,000 shares of Palantir stock for $1.16 million -- even though the stock was trading near an all-time high. This brought the former executive's total holdings (including as the custodian of a minor's account) to more than 66,000 shares worth more than $8.4 million. A stake of that size suggests a fair degree of confidence in Palantir's future prospects. Planishek spent more than eight years at the company and roughly two years as its CAO before tenure ended in February. One could argue that her work with Palantir would provide her with keen insight into the inner workings of the company and a real understanding of the magnitude of the opportunity. That makes it all the more notable that Planishek made such a sizable investment with the stock near an all-time. She's not the only Palantir bull. Wedbush analyst Dan Ives has long been one of the company's staunchest supporters. He believes that Palantir's market cap, which clocked in at $302 billion as of market close on Tuesday, will climb more than 231% to $1 trillion within the next two to three years -- despite the stock's current lofty valuation. Palantir shareholders with a long-term mindset have already been richly rewarded. For those able to step back and see the big picture, the future remains bright.

Palantir Technologies Stock Recently Tumbled. Here's Why There Could Be More Pain in Store. | The Motley Fool

Palantir (PLTR -1.65%) stock crashed after the company reported first-quarter earnings on May 5, but has since recovered a bit. However, this slight recovery is only a blip in a more likely long-term trend. Palantir's stock is incredibly overvalued, and it may have its day of reckoning on the horizon as it's unlikely that it can live up to the expectations baked into the stock price. But how overvalued is Palantir? Palantir has risen in popularity thanks to its artificial intelligence (AI)-powered data analytics platform. The basic idea behind Palantir's software is to take various data streams into the platform, and then the software produces recommendations. Furthermore, with its Artificial Intelligence Platform (AIP) product, this work can be automated with AI agents, further increasing a client's autonomy. Another factor with Palantir is that it has both government and commercial clients. This dual client base is critical to Palantir's success, as governments tend to keep spending during economic downturns. However, with how strong the demand for AI technology is, both client bases are spending hand over fist with Palantir. In Q1, commercial revenue rose 33% year over year to $397 million, while government revenue rose 45% year over year to $487 million. Palantir is seeing monster growth in the U.S. commercial sector, where it saw 71% year-over-year growth to $255 million. U.S. commercial is a promising area, as many companies are racing to reap the benefits that come with AI deployment. Overall, Palantir's revenue rose at a 39% pace, making it one of the fastest-growing stocks on the market. It also gave Q2 revenue growth guidance of 38%. While that represents a slight slowdown from Q1's levels, Palantir's management team has a very consistent track record of beating expectations that it sets for itself. Palantir also displays its strength on the bottom line, with its profit margin continuing to tick up after a slight drop in Q4. Overall, this quarter has been pretty much everything you could ask for as an investor. But why do I think the stock will suffer more? The biggest problem with Palantir is the high expectations priced into the stock. Right now, Palantir's stock trades for jaw-dropping numbers. Valuations of 104 times sales and 224 times forward earnings are just absurd, and are levels that almost no stock ever reaches. If a stock does reach those levels, it rarely grows into the valuation and often crashes. However, Palantir's stock has held up at these levels for a fairly long time. But the stock is a ticking time bomb. To illustrate how much growth Palantir's stock has already baked in, let's make a few assumptions: If all three factors become true over the next five years, Palantir will produce nearly $17 billion in revenue and about $5 billion in profits. That's a huge rise from today's totals, but if you value the stock using its current market cap (around $300 billion), you'd see that it would trade for around 19 times sales and 61 times earnings. Those are more reasonable valuations and are on par with other big stocks like Nvidia (NVDA -0.52%), which currently trades at about 46 times earnings. However, for Palantir's stock to get there, it must stay flat over the next five years. That's a long time to wait with no movement, and it illustrates why Palantir's stock is just too expensive to consider buying shares here. While I don't know when more pain will come for the stock, it will happen eventually, because almost no stock has ever lived up to the expectations priced into Palantir's stock.

Is This Top Holding at Cathie Wood's Ark Invest Worth Adding to Your Portfolio? | The Motley Fool

Cathie Wood -- the founder and CEO of investment management firm Ark Invest -- has made her name by betting big on disruptive and innovative companies. This strategy reaped rich rewards in 2023 and 2024 as her flagship exchange-traded fund, the ARK Innovation ETF, clocked an impressive gain of 82% to beat the S&P 500 index's 53% return by a nice margin. However, 2025 has been a tough year for the ETF due to broad market weakness. The fund is up just 1% year to date, as of this writing, after making a solid recovery in the past month and a half. One of the reasons why the ARK Innovation ETF has bounced back since the beginning of April is because of a strong rally for shares of Palantir Technologies (PLTR 1.00%). The software platforms specialist is up over 40% since April 8, driven by the robust demand for the company's Artificial Intelligence Platform (AIP). Palantir is the sixth-largest holding in the ARK Innovation ETF, and it recently delivered a solid set of results that establish its credentials as a top player in the fast-growing AI software market. Does this mean investors should also make Palantir stock a core holding in their portfolios? Let's find out. The Nasdaq Composite index is down 2% so far in 2025. It entered bear market territory last month due to the turmoil stemming from President Trump's tariff announcements, which raised the risk of a global recession. Palantir also tumbled during this period, but its rebound has been swift. As a result, the stock is now trading at 557 times trailing earnings. Its forward price-to-earnings ratio of 220 points toward a big jump in its earnings this year, but it's still very expensive. While those triple-digit valuation multiples will scare off value-oriented investors, Wedbush analyst Dan Ives believes the software specialist has the potential to more than triple its share price and reach a trillion-dollar market cap in the next three years. That means growth-oriented investors can still consider buying this stock, especially considering the rapidly growing demand for Palantir's artificial intelligence (AI) solutions. Recent results support a bullish outlook as well. Palantir is landing a significant number of contracts every quarter, which is bolstering its long-term revenue pipeline. For instance, Palantir's revenue shot up 39% year over year in the first quarter, a marked acceleration from the 21% growth it recorded in the same quarter last year. The company's bottom-line also more than doubled year over year to $218 million. Looking ahead, the company has been signing larger deals due to the growing interest in its AIP, which allows customers to integrate generative AI into their business processes to improve productivity and efficiency. For instance, the number of $1 million-plus deals signed in Q1 increased 60% year over year to 139. Meanwhile, the number of deals valued at $10 million or more doubled to 31 for the quarter. The significant jump in Palantir's deal sizes can be attributed to a combination of rapid growth in Palantir's customer base and an increase in spending from its existing customers. The company's overall customer count shot up 39%, and its net dollar retention rate increased 13 percentage points from the year-ago period to 124% last quarter. This metric is calculated by dividing the trailing 12-month (TTM) revenue from Palantir's customers at the end of a quarter by the TTM revenue from those same customers in the year-ago period. A net dollar retention rate of more than 100% indicates that Palantir's existing customers raised their spending on its offerings. That's not surprising as Palantir points out that its existing customers have been expanding their current deals following the productivity gains they're witnessing after the deployment of AIP. The AI software platforms market that Palantir serves is expected to grow more than fivefold between 2023 and 2028, generating annual revenue of $153 billion after five years. Palantir's top-line growth in the previous quarter indicates that it is growing almost in line with the end market. However, don't be surprised to see it grow at a faster pace than the AI software platforms space in the future because it's one of the top vendors of AI software platforms as per third-party estimates. The terrific growth in Palantir's customer base and its ability to win a bigger share of existing customers' wallets are giving its margins a big boost. Its adjusted operating margin shot up by eight percentage points year over year to 44% in Q1, indicating that there is more room for growth on this front. Not surprisingly, analysts increased their earnings outlook for the company following the Q1 earnings release: However, Palantir's favorable unit economics could allow it to beat analysts' expectations. That would help the company justify its expensive valuation and deliver more gains. That's why investors who are willing to look beyond its price tag in the near term should consider adding this leading AI stock to their portfolios.