To say that it has been an exceptional year for Palantir Technologies (PLTR -2.17%) would be a gross understatement. Heading into this trading week, the stock rallied by more than 320% since the start of the year.
Despite plunging 5% on Monday, Palantir (NASDAQ:PLTR) stock remains the S&P 500's best year-to-date performer, still up 337% for 2024.
Hope usually springs eternal for the S&P 500 this time of year. But analysts are already sounding specific warnings for next year.
After hitting multiple record highs, Palantir's (NASDAQ: PLTR) share price has retreated, a move partly attributed to ‘buyer exhaustion.'
Over the last two years, there hasn't been a bigger Wall Street catalyst or buzzier trend than the rise of artificial intelligence (AI). The ability for AI-driven software and systems to become more efficient at their assigned tasks, as well as evolve to learn new skills over time, gives this game-changing technology a virtually limitless ceiling.
Palantir Technologies (PLTR -5.08%) is one of the most popular artificial intelligence (AI) stocks on the market. Shares have soared 345% year to date because of encouraging financial results and enthusiasm about its position in the burgeoning AI economy.
I expect the commercial segment growth to accelerate as enterprise AI adoption increases in the next years, eventually overshadowing government revenue. So far, I see strong signs of momentum in enterprise AI adoption. Palantir's US commercial customer base has grown to 295 clients, an 83% YoY increase. I see a company with great fundamentals, including triple-digit net income growth over the last four quarters, 81% gross margins, and record 60% adj. FCF margins.
Despite a ~4x rise this year, Palantir has further gains to offer investors, and I'm reiterating my buy rating on the stock. Palantir's unpredictable growth trajectory and multiple quarters of accelerating revenue make near-term valuation multiples unreliable (the stock trades at ~49x FY25 revenue). In Q3, the company drove 30% y/y revenue growth, accelerating three points while also expanding adjusted EBITDA margins by 8 points y/y.
Palantir Technologies (PLTR) shares retreated Monday after hitting their latest all-time high earlier in the session.
Working with the government continues to be an important part of the business for Palantir Technologies Inc (NASDAQ: PLTR). On Monday, the big data analytics company won an expansion on its contract with the US Special Operations Command.
Shares of Palantir Technologies Inc (NASDAQ:PLTR) were last seen 4% lower at $73.32, but earlier hit a record high of $80.91 after software firm said it expanded its partnership with the U.S. Special Operations Command (USSOCOM).
Palantir stock initially gained then reversed down after the software maker announced an expansion of its contract with the U.S. Special Operations Command. The post Palantir Stock Reverses Down Amid Military Contract Expansion appeared first on Investor's Business Daily.