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Key Points
Palantir Technologies (NASDAQ: PLTR) has seen a remarkable 1,560% surge in share price since its IPO in 2020, contrasting sharply with Alibaba Group Holding (NYSE: BABA), whose shares have fallen nearly 60% during the same timeframe. In the latest reported quarter ending March 31, 2025, Palantir reported a revenue increase of 39% year-over-year to $883.9 million, while Alibaba’s revenues grew by 7% year-over-year to nearly $32.6 billion.
Financials
In the past 12 months, Alibaba generated over $996 billion in revenue with earnings of approximately $129.5 billion, while Palantir reported revenue of $3.12 billion and earnings of nearly $571 million. Notably, Palantir holds a higher profit margin of 18.3% compared to Alibaba’s 13.1%. Alibaba’s cash position stands at $428 billion versus Palantir’s $5.4 billion, with Alibaba also carrying more debt at $248 billion compared to Palantir’s $244.6 million.
Valuation
Palantir’s shares trade at a forward price-to-earnings ratio of nearly 278, while Alibaba’s is at 14. Analysts from LSEG indicate that Alibaba’s price-to-sales ratio of 2.08 is significantly lower than Palantir’s 126.9. According to Wedbush analyst Dan Ives, Palantir’s market cap is anticipated to reach $1 trillion in the next two to three years, although concerns remain regarding whether Palantir’s growth can justify its high valuation compared to Alibaba.
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