For a company that got its started with investment money from the U.S. Central Intelligence Agency and other three-letter spy shops, Palantir Technologies (NYSE: PLTR ) is dramatically transforming the way the private sector does business, and Palantir stock has benefitted. The stock went public in 2020 at $10 a share and today trades at just under $22 a stub.
Despite a recent surge, Palantir stock hit its all-time high three years ago. Unprecedented demand for IPO stocks during the pandemic drove the stock to rarified heights.
Palantir's share price has crossed $20, pushing its market capitalization past $40 billion, benefiting from artificial intelligence and its robust big data platform. The company had a strong Q1 with 40% YoY growth in its US commercial segment and overall revenue growth of 21% YoY. Palantir has won significant contracts, including a $178 million deal with the US Army, and has identified $90 million in savings for the VA, showcasing the strength of its offerings.
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I warned about Palantir stock's "irrational exuberance" in March. PLTR then fell into a bear market through its recent lows. Palantir's recent guidance likely disappointed investors who craved more. Palantir's boot camp-driven AI sales cycle is still nascent, although robust.
Palantir's revenue growth is driven by its commercial segment, which is growing at a faster rate than its governmental segment. The U.S. commercial market is experiencing supercharged growth rates, while the growth rate of the U.S. government segment is only slightly above the general governmental revenue growth rate. Bootcamps have been successful in driving customer conversions and accelerating the monetization process, leading to significant growth in the U.S. commercial segment.