The first time I ever heard about Palantir (Nasdaq: PLTR), several years ago, it was pitched to me as an “equity crowdfunding opportunity” to make a private investment, and a rare chance to buy into one of the hottest defense IT stocks on the planet before its IPO.
Zacks.com users have recently been watching Palantir Technologies (PLTR) quite a bit. Thus, it is worth knowing the facts that could determine the stock's prospects.
Palantir (PLTR 3.65%) has gained a reputation for being one of the best artificial intelligence (AI) investments, with its stock rising a whopping 320% since the start of 2024. However, looking at its current valuation, one could argue the expectations baked into its price may not necessarily be grounded in the company's fundamentals.
Over the last year, shares of ride-hailing tech company Uber Technologies (UBER -1.81%) have gained roughly 9%. This performance is well below that of the S&P 500 and Nasdaq Composite, but I wouldn't be so quick to write Uber off.
High-flying artificial intelligence (AI) stocks have taken the market by storm, soaring to stratospheric valuations. Many investors think the party will continue considering the potential of AI and the growing market size.
After a tremendous 2024, when it rose 340%, Palantir (PLTR 3.65%) hasn't had nearly as great a 2025. To start the year, the stock dipped more than 10%.
Shareholders of Palantir Technologies (PLTR 3.65%) just had a fantastic year. The stock gained 340% in 2024, making it the best-performing component of the S&P 500 (^GSPC 1.00%).
Big Data is big business. According to platform provider Edge Delta, the market for data services is projected to grow from $220.2 billion in 2023 to $401.2 billion by 2028 — an increase of 82.2%. Palantir Technologies Inc. (NYSE: PLTR) is a major player in the space. The company was co-founded by entrepreneur and venture capitalist Peter Thiel, who was also the co-founder of PayPal and the first outside investor in Facebook. Since going public on Sept. 30, 2020, the stock’s price has risen over 628.84%, and it has seen a gain of more than 303.26% so far in 2024. At that growth rate, a $1,000 investment in Palantir’s IPO price of $9.50 would be worth $7288.42 today. Palantir stands as one of Big Data’s industry dominators. However, finding data-driven assessments of where the company’s stock will be in the medium and long term can be complicated. With Wall Street analysts only going as far as providing one-year price targets, it can be difficult for investors to accurately gauge predictions for stocks like these over longer horizons. But for buy-and-hold investors who want to know where Palantir’s stock might be several years down the road, 24/7 Wall Street has done the legwork and can provide insights around the numbers coming from the company, and which market segments the company is operating in that are most exciting to us. Key Points in This Article: Key growth drivers: Palantir’s four operating platforms, AIP, Foundry, Gotham and Apollo. The company’s AI platforms are in high demand from the federal government. Palantir’s two strategic partnerships with space companies will leverage its AI intelligence to drive innovation in space technology. If you’re looking for an AI stock early in the AI growth cycle, grab a complimentary copy of our “The Next NVIDIA” report. It has a software stock that could ride dominance in AI to returns of 10x or more. Recent Palantir Stock Updates and News 1/17/2025 Palantir is looking to invest in Shield AI, a startup that develops AI-powered drones. Shield AI is seeking to raise around $200 million in a new funding round, which could nearly double its value to $5 billion. Venture capital firms like Point72 and Andreessen Horowitz, in addition to companies like Palantir, Airbus, and L3Harris Technologies, are also likely to participate in the investment. 1/14/2025 Palantir’s share price increased 2.6% today, trading as high as $68.23. However, shares changing hands were down 63% from the average daily trading volume. 1/13/2025 Palantir has announced that it will be releasing its fourth quarter and fiscal year 2024 earnings on Monday, February 3rd, after the market’s close. 1/10/2025 For the fourth consecutive trading session, Palantir’s shares are down, this time by 4%. This news follows a bearish valuation of the stock from Trefis Team. 1/8/2025 Palantir’s stock is falling today. Shares have dropped over 20% from their recent high of $84.80. This decline follows a decrease in Palantir’s holdings by Cathie Wood’s Ark Invest and a reaffirmed “Sell” rating from Deutsche Bank. However, Deutsche Bank also raised its price target from $26 to $35, despite maintaining a “Sell” rating. 1/7/2025 Palantir’s stock is experiencing a major fall, largely attributed to ARK Invest selling off $15 million worth of its shares. This also coincides with growing concerns about the company’s high valuation, as seen by Morgan Stanley’s recent downgrade of the stock. 1/6/2025 Morgan Stanley downgraded Palantir to “underweight” today and expressed concerns about the stock’s valuation. Palantir’s stock price surged 340% throughout 2024, leading to concerns about overvaluation. Analyst Sanjit Singh acknowledged Palantir’s impressive commercial success and the strong performance of its Artificial Intelligence Platform but believes that the current stock price may have limited upside potential. 1/3/2025 Palantir’s shares are finally on the rebound today. Following a five-day losing streak, the company’s stock climbed 5.7%. This upward move follows a stellar 2024 for Palantir, during which the stock rallied 340%. 12/30/2024 Today Palantir saw its share price decline 2.4% during midday trading, reaching a low of $76.11. Trading volume was also much lower than average, with approximately 23,940,300 shares traded (a 61% decrease from the average daily volume). 12/27/2024 Palantir is one of the best stocks of 2024 and has outperformed NVIDIA by doubling its stock price gains. Palantir’s stock has surged over 350% this year, compared to NVIDIA’s 175%. Palantir’s Results After Four Years The following is a table that summarizes the performance in share price, revenues, and profits (net income) of PLTR from its inception in 2020 through the second quarter of 2024: Share Price Revenues Net Income 2020 $23.55 1.092 1.166 2021 $18.21 1.541 .520 2022 $6.29 1.905 .373 2023 $17.17 2.225 .209 TTM $26.32 2.479 .404 Revenue and net income in $billions Since going public, Palantir saw its revenue grow by 35.44%, while net income fell by 65.35%. That drop in net income can be easily attributed, though. The company’s IPO in 2020 raised $2.6 billion, but that was shortly followed by 2022’s year-long bear market. Nonetheless, by 2023, the Big Data firm was able to reach profitability for the first time in its then 20-year history. The momentum has continued with a series of earnings beats, most recently on Aug. 7, 2024, when the company reported earnings per share (EPS) of $0.09, which beat analysts’ estimates by 10.55%, and revenue of $678.23 million, which beat by 3.94%. The EPS beat was Palantir’s fourth consecutive and marked the sixth quarter in the last seven when it outperformed consensus. The company ended fiscal 2023 with around $3.7 billion in cash and liquid investments and — notably — no debt. Key Drivers of Palantir’s Stock Performance Palantir’s Expansion and Adoption of AI and Machine Learning Platforms: In addition to its AI bootcamps, the company offers clients four platforms to help manage, analyze, and secure their sensitive data. The first, AIP, focuses on introducing AI into companies’ operations. Foundry, Palantir’s operating system for modern enterprises, allows customers to harmonize and automate decision-making in complex settings while bridging the divide between core business and operating teams with data teams and modeling teams. Gotham, its third platform, focuses on a global scale, with the company billing the software as the weapons system for decision-making, which has extensive applications in defense and combat. Finally, Palantir’s Gotham platform is an operating system for continuous delivery with a focus on deployment — that is, integrating a machine-learning model into a production environment. Palantir is also making a strong push into modular sales to attract smaller clients and scale them with customer solutions as they grow. This strategy will significantly expand Palantir’s customer base and provide years of earnings growth. Government demand: Palantir’s revenue from government sources has outperformed revenue from commercial sources each year since 2020, with notable growth every year. In 2023, government-sourced revenue regifted $1.222 billion compared to $1.002 billion for commercially-sourced revenue. The company’s government clients include the United States Intelligence Community and the United States Department of Defense (DoD). Palantir’s software as a service (SaaS) is one of only five that are authorized for the DoD’s Mission Critical National Security Systems. By revenue, the U.S. government is the company’s largest client, and with ever-growing defense spending as a fixture of the U.S. federal government’s budget, the relationship is ripe. Bottomline, government demand is still core to Palantir, and with modular sales, the company will pack a double punch of private and public Space partnerships: On June 27, 2024, Palantir signed a strategic partnership with Voyager Space with the aim of leveraging its AI intelligence to drive innovation in space technology. According to its press release, Voyager will now fully integrate Palantir’s AI capabilities into its defense solutions, enhancing communications, military research and development, and bolstering intelligence and space research with the end goal of making space more accessible to the defense community. Voyager will be using Palantir’s Foundry platform. This marks the second strategic space partnership for the company, which also signed an agreement with Starlab Space on June 20, 2024. In this deal, Palantir became the exclusive supplier of enterprise-wide software data management solutions for the Starlab commercial space station — a planned low Earth orbit venture that is expected to launch no later than 2028 and is a joint venture between Starlab and Airbus. Palantir (PLTR) Stock Prediction in 2025 The current consensus median one-year price target for Palantir’s stock is $37, which represents a downside potential of -46.27%. 24/7 Wall Street’s 12-month forecast projects Palantir’s stock price to be $47 with earnings per share coming in right at $0.43. We see strong CAGR growth in sales of government contracts, upwards of 26% annually, and have factored for $3.186 billion in forecast revenue. Palantir (PLTR) Stock Forecast Through 2030 Year Revenue Net Income EPS 2025 $3.467 $1.178 $0.47 2026 $4.198 $1.465 $0.56 2027 $5.203 $1.686 $0.71 2028 $6.185 $2.050 $0.87 2029 $7.300 $2.496 $1.06 2030 $8.482 $2.990 $1.27 Revenue and net income in $billions = How Palantir’s Next 5 Years Could Play Out We expect to see revenue growth of just over 20% and EPS of 47 cents for 2025. We expect the stock to still trade at a similar multiple next year, putting our estimate for the stock price for Palantir at $58 in 2025, which is -16.23% lower than the stock is trading today. We also expect the company to surpass $1 billion in free cash flow in 2025, with $1.052 billion. Going into 2026, we forecast steady year-over-year increases for both revenue and net income of just over 21% and nearly 24%, respectively. 24/7 Wall Street’s price prediction for 2026 is $81, an upside of 16.98% over today’s stock price. We expect to see a larger increase in revenue for 2027, and by extension, a larger gain in net income, which could breach $1 billion for the first time. Estimates are for revenue increases of 24% and an EPS increase of 23%, resulting in an annualized EPS of $0.71. We also forecast Palantir to surpass $2 billion in free cash flow by posting $2.380 billion. The stock price prediction for 2027 is $92, up 32.87%. After breaching $1 billion in net income in 2027, we expect PLTR to take another step forward in 2028 by posting revenue of $6.104 billion, net income of $1.432 billion, and an annualized EPS of $0.79. We also forecast that the company will exceed $3 billion in free cash flow, posting $3.372 billion. The stock price for 2028 comes in at $102, an upside of 47.31%. We expect revenue to increase to $7.208 billion for an 18% year-over-year gain, with net income growth of 22% and EPS coming in at $1.06, good for a 22.78% year-over-year gain. We also forecast free cash flow to surpass $4 billion by posting $4.566 billion. But our price-to-sales multiple will be lower as growth slows, and the price projection for the year is $114, an upside of 64.64% over today’s stock price. Palantir Stocks Price Target for 2030 On the back of forecast revenue in excess of $8 billion, we expect Palantir’s net income to surpass $2 billion for the first time, and post an EPS of $1.27. We expect free cash flow to approach $6 billion by posting $5.895 billion. The price projection for 2030 is $125, an upside of 80.53% over today’s stock price. Year Price Target 2025 $58 2026 $81 2027 $92 2028 $102 2029 $114 2030 $125 Revenue and net income in $billions “The Next NVIDIA” Could Change Your Life If you missed out on NVIDIA’s historic run, your chance to see life-changing profits from AI isn’t over. The 24/7 Wall Street Analyst who first called NVIDIA’s AI-fueled rise in 2009 just published a brand-new research report named “The Next NVIDIA.” Click here to download your FREE copy. The post Palantir Technologies (PLTR) Price Prediction and Forecast 2025-2030 appeared first on 24/7 Wall St..
Palantir continues to successfully implement real-world AI across government and commercial sectors at an impressive rate. Palantir has done a great job diversifying to the commercial sector, lessening its dependence on government contracts. By growing and expanding upon existing partnerships, Palantir is fast becoming a focal point in an increasingly large AI-driven ecosystem.
Corporate insiders were exceptionally quick to begin selling vast quantities of their companies' stock as soon as 2025 began.
The latest trading day saw Palantir Technologies Inc. (PLTR) settling at $69.21, representing a +1.57% change from its previous close.
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