Palantir Technologies (NYSE: PLTR) has seen shares rise over 40% since Donald Trump’s victory in the 2024 presidential election, which has led to speculation about its future role in government data analytics. The company specializes in big data analytics, notably for military and law enforcement, operating on a software-as-a-service model. Its revenue hit $729 million in Q3 2023, reflecting a 30% year-over-year growth driven mainly by U.S. government clients, which accounted for about 44% of its sales.
As of 2022, 11 million undocumented migrants reside in the U.S., a central issue in Trump’s campaign. Investors anticipate that Palantir may facilitate immigration enforcement under the Republican administration, similar to its controversial role during Trump’s previous term. However, Palantir’s financials reveal it only earned $127 million from Immigration and Customs Enforcement (ICE) contracts between 2013 and 2022, contrasting starkly with a $480 million contract with the U.S. Army for AI development.
Currently, Palantir’s stock is priced with a forward P/E ratio of 143, significantly higher than the S&P 500’s 23 and Nvidia’s 38, prompting caution among potential investors about stock valuations versus actual fundamentals.
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