From Nasdaq: 2024-11-12 04:37:00

Palantir (NYSE: PLTR) has seen a 240% increase in shares in 2024, thanks to the AI revolution enhancing its AIP platform. The company’s revenue growth and operating margin have both expanded, a rare feat in the software industry. Palantir’s adjusted operating margin has shown steady growth, with its revenue increasing by 30% in the last quarter.

The strategy behind Palantir’s success lies in focusing on product excellence rather than aggressive sales and marketing. By deeply integrating its software platforms into customer operations, Palantir builds long-lasting relationships and drives revenue growth. The company’s net retention rate was 118% last quarter, a testament to its effective customer engagement strategy.

Top brands like Apple and Microsoft share a similar strategy of leading with superior products to minimize sales and marketing expenses. Palantir’s approach has resulted in high margins and strong returns on capital. Investing in a company that can grow without heavy sales and marketing costs could be a wise long-term investment.

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Read more at Nasdaq: Palantir’s Margin Is Going Parabolic, and It’s All Due to This Winning Business Strategy