Palantir’s Impressive Stock Performance
Palantir Technologies Inc. (NASDAQ: PLTR) went public on September 30, 2020, with an opening stock price of $10 per share. The stock now trades at approximately $178, marking a significant rally of 1,680%, which outpaces the S&P 500’s 107% gain over the same timeframe. The company’s revenue growth has shifted recently, with an increase of 24% in 2022 and 17% in 2023, down from 41% in 2021.
In 2024, Palantir’s revenue rose by 29%, driven by a new $10 billion contract with the U.S. Department of Defense and growth in its commercial business as interest rates declined. The company projects full-year revenue to increase by 53%-54% in 2025, with GAAP earnings per share expected to more than triple, reflecting a compound annual growth rate of 45% in revenue and 84% in earnings per share from 2024 to 2027.
Palantir’s current market valuation stands at $421.5 billion, trading at 217 times and 67 times its projected earnings and revenue for 2026, respectively. While some analysts warn that the stock may be overvalued, the company continues to expand its contracts across both government and commercial sectors.
