Palantir Technologies Inc. (PLTR)
Billionaires Are Selling Palantir Stock and Buying 1 Supercharged Index Fund for the Artificial Intelligence (AI) Boom
Palantir shares have surged 285% year to date due to encouraging financial results and growing excitement about its position in the artificial intelligence economy. However, the billionaire-run hedge funds below sold Palantir stock in the third quarter, while buying shares of the Vanguard Information Technology ETF (VGT -1.03%).
Palantir Vs. Super Micro Computer: A Tale Of Two Camps
Growth versus value has long been a key debate in the investing community. And the latest developments at Palantir and SMCI have made them a fitting pair for such comparison. Although both stocks were once viewed jointly as key AI beneficiaries, they've since diverged in their paths. On one hand, Palantir's soaring to all-time highs with an eyewatering valuation of almost 50x NTM sales, backed by AI-driven acceleration to its growth trajectory.
Could SoundHound AI Be the Next Palantir?
Palantir Technologies (PLTR 0.47%) has been one of the most exciting stocks of 2024, rising around 275% year-to-date at the time of this writing. Those are impressive returns that every investor wants, which causes many to hunt for stocks that could be the next Palantir (at least in terms of stock performance).
Palantir Technologies (PLTR) Price Prediction and Forecast 2025-2030
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 592.00%, and it has seen a gain of more than 282.88% so far in 2024. At that growth rate, a $1,000 investment in Palantir’s IPO price of $9.50 would be worth $6920.00 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 11/27/2024 Bank of America has increased its price target for Palantir from $55 to $75 and maintained its “Buy” recommendation. However, this update has sparked mixed reactions from the analyst community. Various firms maintain a wide range of price targets for Palantir, from $9 to $75. 11/26/2024 Microsoft and Palantir are teaming up to deliver advanced AI and analytics services to the U.S. defense and intelligence community. The partnership will combine Microsoft’s Azure OpenAI Service with Palantir’s AI-powered security analytics tools. 11/25/2024 Palantir’s stock price increased by 1.5% to $65 today after Wedbush Securities upgraded its price target to $75 while maintaining an “Outperform” rating. 11/22/2024 Palantir’s stock price increased today by 1.3%, trading as high as $63.04. 11/21/2024 Palantir’s shares declined 0.4% today following an inside sale of company shares. 11/20/2024 Palantir’s shares are experiencing a 3.5% decline today, trading as low as $59.96. 11/19/2024 Jefferies analyst Bret Thrill has downgraded Palantir to “Underperform” from “Hold”, setting a $28 price target. This indicates a potential 60% decline from current stock prices. 11/18/2024 Palantir’s shares fell today 7.4%, which is nearly the largest decline in a single day since July. However, the company is still riding high, as its shares have increased by 255% just this year. 11/15/2024 Palantir’s stock price spiked this morning after the company announced that it will be leaving the New York Stock Exchange and joining Nasdaq. 11/14/2024 Palantir has extended its partnership with Rio Tinto, a major global mining company. This renewed agreement will keep Rio Tinto using Palantir’s AI platform for the next four years. 11/12/2024 Palantir has officially surpassed Lockheed Martin Corp in market capitalization. Yesterday, Palantir’s stock hit $60.24, an all-time high for the company. 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 -43.41%. 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 -11.77% 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 23.21% 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 39.95%. 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 55.16%. 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 73.41% under 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 90.14% 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. NVIDIA has returned 250-fold in the past 10 years as artificial intelligence took off. But if you missed out on NVIDIA’s historic run, your chance to see life-changing profits from AI isn’t over. “The Next NVIDIA” stocks have been revealed in a new report, and they’re ready to dominate the next wave of growth. The report is absolutely free. Simply enter your email below to receive a copy today. Get Report Now — Its Free >> Check Your Email! “The Next NVIDIA” Report is Being Sent to Your Inbox Right Now By providing your email address, you agree to receive communications from us regarding website updates and other offerings that may be of interest to you. You have the option to opt-out of these emails at any moment. For more information, please review our Disclaimer and Terms of Use. The post Palantir Technologies (PLTR) Price Prediction and Forecast 2025-2030 appeared first on 24/7 Wall St..
Suze Orman says that many young Americans are investing the wrong way – here’s what she suggests instead
This post may contain links from our sponsors and affiliates, and Flywheel Publishing may receive compensation for actions taken through them. Suze Orman is a terrific financial finance guru to follow closely if you’re a young person who’s just getting started on your saving and investing journey. She tells it like it is and can really help someone gain a better understanding of how the wealth-creating process works over time. According to Orman, one of the biggest mistakes young American investors are making today is trying to hit it big on individual stocks. Undoubtedly, it’s not hard to imagine that many folks get drawn into stocks from a hot tip from a friend or coworker. Instead of trying to play stocks or searching for opportunities to make a quick couple of bucks, Orman believes young and new investors should stick with a long-term plan, one that I find boring but profoundly effective. Implementing a dollar-cost averaging approach with index funds (think ones that follow the S&P 500) is a smart, long-term game plan that young Americans should get behind. Is it really that simple, though? I think it is. Key Points About This Article Orman is right. There are way too many young people drawn into markets with the intent of trading hot stocks. Investing for the long term may not be as fun, but it’s a time-tested way to build wealth in the long haul. Also: Take this quiz to see if you’re on track to retire (Sponsored) Young investors: Piling into exciting stock picks isn’t the way to go! Indeed, someone bragging about their soaring Palantir (NYSE:PLTR) position may just push you to pick up your own shares at markedly higher prices. Indeed, companies like Palantir are “in” right now, with explosive momentum behind them and tremendous promise for the future as the firm rides on the back of a number of emerging high-tech trends (most notably, artificial intelligence) that could pave the way for explosive sales growth prospects for a number of years. Of course, your mileage will vary when it comes to placing big bets on individual hot stocks that today’s young people can’t stop talking about. For now, shares of PLTR only seem to march higher in any given week or month. That said, the name is no stranger to some pretty substantial drawdowns. And one will likely be in the cards in the future. When it comes to exciting, emerging AI-driven growth companies, it can be pretty tough to know when a valuation has soared above and beyond what’s reasonable. If you can’t get a grasp on the valuation of a firm and pick up shares just because of the sheer momentum behind a name, you’re speculating and not investing. Of course, you could still make big money over a near-term timespan (young people today want big gains and many don’t want to have to wait years to achieve it). In any case, Orman is right on the money when she notes many young people are trying to trade the hot individual names out there with the intent of hitting it big. Some timely investments will yield big gains, and you’ll probably hear about some of the success stories in the headlines. However, there are so many investment busts that you likely won’t hear about unless you go searching for “loss” posts in Reddit’s r/WallStreetBets. Dollar-cost averaging into index funds sounds boring. But it’s the right way to get started. Orman is a massive advocate of dollar-cost averaging, and it’s not hard to see why. It takes a big chunk of the market “timing” aspect out of the game. Also, it removes the need to pick individual names you may not be familiar with as a new investor. Perhaps most importantly, however, is it keeps investing boring enough such that investors won’t get euphoric over the potential to chase red-hot speculative plays. If you’re a new investor, I’d encourage you to check out Orman’s content. She can push you in the right direction if you’re a misled new investor who may be trading and speculating instead of investing in your future. At the end of the day, the stock market is a place to grow wealth over the long run, but for some, it’s also a lottery ticket. The key is taking the right steps so you’re investing wisely and not risking your shirt for a shot at fast gains. And if you can afford it, I’d strongly encourage you to reach out to a financial adviser, as their support can be invaluable to a beginner. Get Ready To Retire (Sponsored) Start by taking a quick retirement quiz from SmartAsset that will match you with up to 3 financial advisors that serve your area and beyond in 5 minutes, or less. Each advisor has been vetted by SmartAsset and is held to a fiduciary standard to act in your best interests. Here’s how it works: 1. Answer SmartAsset advisor match quiz 2. Review your pre-screened matches at your leisure. Check out the advisors’ profiles. 3. Speak with advisors at no cost to you. Have an introductory call on the phone or introduction in person and choose whom to work with in the future Get started right here. The post Suze Orman says that many young Americans are investing the wrong way – here’s what she suggests instead appeared first on 24/7 Wall St..
Up 288%, Is Palantir Stock a Buy?
With shares up 288% year to date, Palantir (PLTR 0.54%) is one of 2024's best-performing artificial intelligence (AI) stocks, easily beating out hardware giant Nvidia (up 188%). But do this data analytics company's fundamentals justify its $140 billion market cap?
This Palantir ETF pays you almost half of your investment back each year
Throughout the course of the year, some of the most impressive returns in the stock market were achieved on the back of the artificial intelligence revolution. Semiconductor companies like Nvidia (NASDAQ: NVDA) or AI infrastructure providers like Palantir (NASDAQ: PLTR) have benefited greatly.
Cramer Calls Palantir (PLTR) A “Meme Stock” – Is it the Next Gamestop?
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What's New With Palantir Stock?
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Billionaire Ken Griffin Sold 91% of Citadel's Stake in Palantir and Nearly Tripled His Position in This Cutting-Edge Artificial Intelligence (AI) Stock
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Cathie Wood dumps millions of Palantir and Tesla stock; Here's what she bought
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Is Palantir's Stock in a Bubble? History Says Yes.
There's plenty of evidence that Palantir's (PLTR) stock is in a bubble. History is not on Palantir's side, and many companies have traded around the lofty expectation its stock currently trades at, and few (if any) have worked out well for investors.
