From Nasdaq: 2024-11-21 21:09:43

Palantir Technologies stock (NYSE: PLTR) has surged over 3.5x in 2024 to reach $63, driven by increased demand for AI solutions, U.S. government contracts, and S&P 500 inclusion. However, PLTR’s annual returns have been volatile, with -23% in 2021, -65% in 2022, and 167% in 2023, contrasting with Trefis’ less volatile HQ Portfolio.

In Q3, Palantir’s revenue rose 30% YoY to $726 million, with $0.10 EPS and strong margins. The company’s government sales also increased 33% to $408 million. Palantir’s tools are widely used by U.S. agencies for national security and immigration, making it a “Trump trade” with potential government spending boosts.

Despite strong government sales, concerns arise from Palantir’s volatile contracts and underperforming commercial side. The stock currently trades at high multiples, with revenue growth rates of 25% projected for 2024 and 2025. Insider selling by CEO Alex Karp and economic uncertainties pose further challenges for Palantir’s stock price and valuation.



Read more at Nasdaq: Palantir Stock At $63: A Reality Check