- KEY POINTS
- Palantir's
shares have surged tremendously over the past year, pushing its valuation to
costly levels.
- However,
the company's rapid growth in revenue and earnings, driven by the growing use
of its artificial intelligence (AI) software solutions, appears sustainable.
- Growth-oriented
investors may want to consider Palantir's valuation, as its strong rally in the
stock market is likely to continue.
1. Introduction
Palantir
Technologies Inc. One of the most renowned names in the technology and data
analytics field. Founded in 2003, the company began as a tool for
counterterrorism and government intelligence operations but has since expanded
its services to commercial sectors, including healthcare, finance, and
manufacturing. Its software platforms—Palantir Gotham, Foundry, and Apollo—are
used by governments and enterprises to make data-driven decisions. In recent
years, Palantir has become a popular stock for both institutional investors and
retail traders. Because of its deep ties to artificial intelligence, big data,
and defense contracts, investors keep a close eye on Palantir's stock price for
signs of potential future growth.
In
recent years, Palantir has become a popular stock for both institutional
investors and retail traders. Due to its deep connections to artificial
intelligence, big data, and defense contracts, investors keep a close eye on
Palantir's stock price for signs of potential future growth.
2. Palantir Share
Price Today – Quick Snapshot
Although
the livestock price changes every second, what matters most is the underlying
trend. Palantir's stock has seen both sharp rises and steep falls over the past
few years, making it a high-volatility stock.
Today,
investor sentiment around Palantir is largely shaped by:
·
Its strong
government contract pipeline.
· AI-related
hype in the market.
·
Mixed earnings
performance
For traders, the
“share price today” is not just a number—it’s a reflection of market
confidence, ongoing contracts, and expectations for AI adoption.
3. Historical Performance of
Palantir Stock
Palantir went public
via a direct listing in September 2020 at around $10 per share. Initially, it
gained momentum due to government partnerships and investor excitement over big
data capabilities.
Key
moments in its stock history include:
·
Early 2021: Surge to over $35 amid
retail investor interest and bullish sentiment on tech stocks.
·
2022: Decline due to rising interest
rates, tech sector selloffs, and slowing revenue growth.
·
2023–2024: Renewed interest as AI
adoption accelerated and Palantir won significant contracts, boosting optimism.
This history shows
that Palantir's stock price is heavily influenced by market cycles, investor
speculation, and contract wins.
4. Palantir's growth continues
to accelerate & Factors Influencing Palantir Share Price,
Palantir's revenue
grew by a significant 48% to nearly $1 billion compared to the same quarter
last year. This is the company's first quarter to surpass the one billion
dollar revenue milestone. year, Palantir achieved remarkable revenue growth of
27% year-over-year, reflecting the impressive growth rate they maintained in
the previous quarters.
Palantir management
attributes its improved growth trajectory to rapidly growing demand for AIP
from both existing and new customers. Palantir's AIP is being implemented
across a number of industries, from healthcare to automotive,
telecommunications, and banking. The platform enables customers to incorporate
generative AI into their workflows, enhance productivity, reduce redundancy,
and boost operational efficiency, ultimately leading to substantial cost
savings.
As a result, Palantir
says it is seeing "new startups with high ambitions, and existing
customers are rapidly expanding their work." On the other hand, the
company's government revenue also grew by an impressive 49% year-over-year. The
company’s software, which is specifically designed for AI applications, is
garnering strong interest from government customers, as evidenced by a
ten-year, $10 billion deal it signed with the US military last week.
The growing interest
in Palantir's AI software in both commercial and federal markets is paving the
way for long-term growth for the company, as it establishes a solid revenue
stream. Notably, Palantir secured a remarkable $2.3 billion in new contracts in
the last quarter alone. Furthermore, the company's total contract value has
grown by an astonishing 140% year-over-year, which is nearly three times the
rate of its revenue growth.
Last quarter,
Palantir saw significant growth in contract value, with the company's remaining
deal value (RDV) increasing 65% to $7.1 billion compared to the same period
last year. RDV reflects the total value of Palantir's outstanding contracts at
the end of the quarter, indicating that the company has a strong backlog that
will drive even stronger growth going forward.
Investors should
focus on the favorable impact that Palantir's contract extensions with its
customers will have on its margins. have seen a significant increase of nine
percentage points, now reaching 46% compared to the same period last year. This
improvement is quite understandable; Palantir is reducing spending on acquiring
new business from its existing customers. Given that the
company is constantly adding new customers—its customer base grew by 43% last
quarter—there's room for further improvement in its margins once new customer
accounts increase their use of Palantir's solutions.
Palantir saw its
adjusted earnings grow an impressive 78% last quarter, reaching $0.16 per
share. For the third quarter, the company anticipates adjusted operating income
of $495 million, which represents a 79% increase over the same period last
year. This will enable Palantir to maintain its impressive earnings growth
rate.
In conclusion, when
we look at the substantial long-term potential in the AI software platform
market that Palantir is targeting, it seems like the company can support its
high valuation.
5. Recent Quarterly News Impacting Palantir Stock
Palantir
Technologies (PLTR 2.53%) stock has delivered a massive 600% gain to investors
over the past year, and it looks like the artificial intelligence (AI) software
specialist could be headed for even faster gains after the release of its
latest quarterly report.
Palantir
released its second-quarter results on Aug. 4. Growing demand for the company's
artificial intelligence platform (AIP) helped it outperform Wall Street's
expectations, and it also raised its estimates for the full year. However,
investors may now be wondering whether it makes sense to buy Palantir stock
after its massive gains over the past year, especially given its astonishing
valuation.
Let's
see if Palantir has enough fuel to justify its expensive valuation and bring
investors even more gains.
6. Technical Analysis Overview
From
a trading perspective, Palantir's chart typically goes through consolidation
phases, often followed by breakout rallies. Traders focus on key support
levels, typically found in the $13-$15 range, as well as resistance levels
above $20, to determine their entry and exit strategies.
Useful
indicators, including the relative strength index (RSI), moving averages, and
trading volume, help identify changes in momentum. In particular, day traders
rely on these trends for short-term price predictions.
7. Palantir in the AI and Data
Analytics Sector
Palantir
is becoming a major player in the adoption of enterprise AI.Their AI Platform
(AIP) enables businesses to incorporate artificial intelligence into their
operations, prioritizing security, scalability, and improved decision-making
capabilities.
What
sets Palantir apart from other technology companies is its strong ties to the
government and defense sectors, which provide a consistent revenue source even
in challenging economic conditions. However, expanding its presence in the
commercial market will be essential to drive stock price growth in the future.
8. What will Palantir be worth
in 5 years?
Wall
Street's outlook on PLTR's prospects is quite mixed. On the one hand, some
analysts argue that the stock is overvalued, and its value is too high relative
to its earnings. On the other hand, some analysts believe that as AI technology
becomes more prevalent, Palantir's earnings could grow significantly, which
could lead to a rise in its stock price.
Key themes in the forecasts
include:
·
Bullish
forecast: Increasing demand for AI and signing new contracts could push PLTR
beyond its previous peak.
·
Bearish
forecast: If revenue growth falls short of expectations or the company loses
key contracts, this could lead to a bearish outlook.
9. Is Palantir a buy hold or
sell?
Palantir
Technologies (PLTR) has become a hot topic among investors lately, leading to a
variety of opinions on its growth. Recent financial reports have shown
significant growth, especially in the US commercial sector, where revenues grew
an impressive 93% year-over-year in the second quarter of 2025. Notably, the
company has surpassed $1 billion in total revenue for the first time,
reflecting the growing use of its AI platform (AIP) across a variety of
industries. Furthermore, Palantir has enjoyed stable profitability, and its
balance sheet remains solid, with no debt.
However,
the company's valuation has sparked considerable debate. With a market
capitalization of hundreds of billions and a price-to-sales ratio superior to
its competitors, many analysts warn that the stock may be overvalued.
Currently, the stock price is well above the average analyst price target, and
some are anticipating a potential decline in the coming years. While supporters
point to the impressive growth and position Palantir has built in the AI space,
critics argue that the valuation has far outpaced the company's fundamentals.
Currently, most analysts are recommending a "hold" rating, indicating
that while the company itself is strong, the entry point for new investors may
not be optimal given the current share price.
10. Does Warren Buffett own
Palantir?
As
of my latest knowledge, Warren Buffett, through Berkshire Hathaway, does not
hold a direct stake in Palantir shares. His investment strategy focuses on
companies he fully understands, which keeps him away from complex, high-tech
companies like Palantir. Buffett has also admitted that he does not fully
understand the intricacies of artificial intelligence, a key part of Palantir's
business model.
Here's
an interesting aspect, though. Although Buffett does not personally own
Palantir shares, Berkshire Hathaway does invest in S&P 500 index funds.
When Palantir became part of the S&P 500, these funds automatically
included this stock to reflect the performance of the index. So, although there
is a very small, indirect representation of Palantir in Berkshire's broader
portfolio, it is not due to a direct investment choice made by Buffett. This
distinction is important, as it does not reflect their personal opinion about
the company's capability.
11. Conclusion – The Road Ahead
for Palantir
Palantir
remains one of the most exciting—and controversial—stocks in the tech sector.
Its share price today reflects a balaznce between AI growth potential and
valuation concerns. With strong government contracts, expanding commercial
offerings, and a focus on AI innovation, Palantir could see significant upside
in the years ahead.
However,
volatility is likely to remain high, meaning investors should stay informed and
prepared for sharp price movements.
- KEY POINTS
- Palantir's shares have surged tremendously over the past year, pushing its valuation to costly levels.
- However, the company's rapid growth in revenue and earnings, driven by the growing use of its artificial intelligence (AI) software solutions, appears sustainable.
- Growth-oriented investors may want to consider Palantir's valuation, as its strong rally in the stock market is likely to continue.
3. Historical Performance of
Palantir Stock
Palantir went public
via a direct listing in September 2020 at around $10 per share. Initially, it
gained momentum due to government partnerships and investor excitement over big
data capabilities.
Key
moments in its stock history include:
·
Early 2021: Surge to over $35 amid
retail investor interest and bullish sentiment on tech stocks.
·
2022: Decline due to rising interest
rates, tech sector selloffs, and slowing revenue growth.
·
2023–2024: Renewed interest as AI
adoption accelerated and Palantir won significant contracts, boosting optimism.
This history shows that Palantir's stock price is heavily influenced by market cycles, investor speculation, and contract wins.
0 Comments
ThankYou!