Given the notable rise in PLTR stock, let's assess its current position and determine whether it will continue to be a promising investment.
Palantir Technologies Inc PLTR has surged over 40% in the past month, 266% YTD, propelled by a series of high-profile partnerships with industry giants like Microsoft Corp, Amazon.com Inc AMZN, and Rio Tinto PLC RIO.
Palantir reported a strong Q3'24 with 30% revenue growth and a significant adjusted operating margin expansion to 38%, achieving a "Rule Of" 68%. Management raised FY24 guidance to $2.805-2.809 billion in revenue and $1.054-1.058 billion in adjusted operating margin, with a 38% margin at the midpoint. Palantir continues to drive large deals through its AIP bootcamps, closing 104 deals each valued over $1mm in q3'24.
It's full speed ahead for these two growth stocks.
Palantir's price has far exceeded every analyst's target.
Palantir's strong revenue growth, particularly in the US government and commercial segments, supports the scalable AI solution thesis, with 2024 guidance slightly above estimates. The company's AI applications demonstrate real-world utility, reducing manpower and processing times significantly, which enhances decision-making and operational efficiency. Despite the impressive performance, Palantir's valuation is extremely high, posing risks from political budget cuts, competition, and execution challenges across different industries.
Why Is Everyone Talking About Palantir Stock?
Palantir just tapped Amazon to help bring artificial intelligence (AI) tools to the U.S. military.
Palantir's profits are growing at a faster rate than revenue.
Palantir's Q3 earnings report highlighted its differentiating business model with superb scalability and profitability. Investors are willing to pay 158x FWD P/E for such a business model. Palantir's free cash flow significantly exceeds its accounting EPS, suggesting its true earnings power is underestimated.
You may have heard of Palantir (PLTR) after its 250% year-to-date rally. Kevin Green talks about why Palantir has seen such a monstrous rip to the upside as it renews its Rio Tinto Group (RIO) partnership.
Shares of AI darling Palantir (NASDAQ:PLTR) went parabolic following the release of some exceptional quarterly earnings results.