From Nasdaq, Inc.:

According to Morningstar, Palantir stock was the fifth best-performing stock in 2023, with a 167.5% return despite a 14% loss in December. Both Palantir and Nvidia focus on AI, making them strong contenders for another successful year in 2024.

Although Palantir has the highest price-to-fair value ratio of the top five performing stocks in 2023, at 1.32, indicating it is overvalued by 32%, this could be an opportunity for those with above-average risk tolerance and a 3-5 year holding period.

Palantir’s heavy reliance on government contracts is a significant issue, accounting for 55.2% of its overall revenue in Q3 2023. However, its overall revenue was 16.8% higher due to a 23% increase in commercial revenue.

Palantir’s GAAP profits in Q3 2023 make it eligible for the S&P 500, with a projected revenue of $2.218 billion and an expected GAAP profit of $284 million in 2023. The company’s TTM adjusted free cash flow was $501.5 million, indicating strong financials and potential for continued growth.

With four major platforms and over 150 AIP users, Palantir’s compelling AI story makes it a buy for aggressive investors, with expectations for significant growth in 2024.



Read more: PLTR Stock Outlook: Why Palantir Is Poised to Double (Again) in 2024