Palantir Technologies, Inc. (PLTR) might not have experienced explosive growth since its public debut, but it has certainly become a favorite among retail investors. As the company celebrates its fourth anniversary as a publicly traded entity, let’s delve into how it has rewarded its shareholders.
Founded in 2003 by venture capitalists Peter Thiel, Alex Karp (the current CEO), and Stephen Cohen, Palantir is headquartered in Denver, Colorado. The company specializes in providing data analytics software and services to both government and commercial clients. Its portfolio boasts four key platforms:
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Gotham:
Primarily serving government functions, Gotham helps users uncover hidden patterns within vast datasets, ranging from intelligence sources to confidential reports. It’s now being offered to commercial customers as well.*
Foundry:
This platform acts as a central operating system for clients’ data.*
Apollo:
Designed for rapid and secure software delivery and updates across businesses, Apollo also allows clients to deploy their own software securely in various environments.*
AIP (Artificial Intelligence Platform):
AIP empowers organizations to harness the responsible use of AI, featuring core components built to effectively activate LLMs (large language models) and other AI tools within any organization.In the most recent quarter, Palantir reported a 27% increase in revenue, reaching $678 million. Government clients contributed $371 million (roughly 55% of total revenue), while the commercial segment added $278 million. Demonstrating continued momentum, the company closed 27 deals worth over $10 million during the quarter, and its customer count climbed by 41%. Furthermore, Palantir raised its revenue guidance for the full year to $2.742 billion to $2.750 billion.
The company’s strong performance hasn’t gone unnoticed. In September, Palantir was added to the prestigious S&P 500 Index. Tech bull and Wedbush analyst Daniel Ives recently boosted his price target for Palantir shares from $38 to $45, expressing increased confidence in the company’s enterprise-driven AIP Strategy. Ives anticipates more enterprises will be actively discussing the potential deployment of AIP by 2025. He believes that with the projected surge in AI spending within IT budgets in 2025, Palantir is strategically positioned to capitalize on this growth by expanding its pipeline and deal flow.
Palantir’s public journey began in September 2020 through a direct listing, with a reference price of $7.25 per share, giving the company a valuation of $16 billion. The shares opened at $10 and traded between $9.11 and $11.41 before closing at $9.50.
While the stock didn’t experience an immediate post-listing surge, it reached a peak of $39.22 in early February 2021 before undergoing a consolidation period throughout the year. In 2022, the stock mirrored the broader market downturn, experiencing muted performance until mid-2023. Since then, Palantir has staged a notable recovery.
A $1,000 investment in Palantir at the closing price of $9.50 on its debut day would have yielded 105 shares. Today, those shares would be worth approximately $3,916, reflecting a return of roughly 292%. In comparison, the S&P 500 has gained slightly over 71% during the same period.
As of premarket trading, Palantir shares were up 0.05% at $37.22. The company’s commitment to AI, coupled with its growing customer base and strong financial performance, suggests a bright future for Palantir Technologies. Its journey from a data analytics specialist to an AI-powered powerhouse continues to reward its investors, making it a compelling investment proposition.
