Palantir Technologies Community

Valuation section updated on Feb 04, 2025 ------------------------------------------------------------------------------------------------------------------------------ Company Overview Founded in 2003 by Peter Thiel, Alex Karp, Stephen Cohen, Joe Lonsdale, and Nathan Gettings, Palantir Technologies emerged from the shared vision of transforming how data could be used to solve complex problems. Peter Thiel, a co-founder of PayPal and a prominent venture capitalist, brought his knack for identifying transformative opportunities.

The fundamental business is growing good and may continue to do so but what is bewildering is the growth in the share price which is completely detached from the fundamentals. Even taking lofty valuation priced for perfection, the stock appears overvalued.

Many don't understand the importance of Palantir, specially witch such young and unstoppable sector such as the revolutionary AI craze that has branched out and all continue to do so, specially when it comes to weapons and what such a great company that has no competition such as Palantir that offers many of its clients defense Palantir's customers include: Government agencies The US Department of Defense, US Air Force, US Department of Homeland Security, and the National Geospatial-Intelligence Agency Large businesses Amazon Services, AT&T, United Airlines, CVS Health, BP, Stellantis USA, Rio Tinto, and General Mills Other companies Morgan Stanley, Merck KGaA, Airbus, Wejo, Lilium, PG&E, Fiat Chrysler Automobiles, Origin Energy, and Aramark Palantir's software is used for data integration and analysis, and for continuous integration/continuous delivery (CI/CD). The company's relationship with the CIA began when it sold its software to help detect roadside bombs in the wars in Iraq and Afghanistan.

Given the valuation data provided, and drawing from broader market sentiment and historical trends, here's an analysis of Palantir Technologies Inc. including potential market risks: Valuation Analysis 1.

UBS; GLOBAL RESEARCH; 18 DEC 2024 Summary We're launching coverage of Palantir shares with a Neutral rating, an $80 price target, 2025/2026 estimates that are well above the Street consensus (+200bps on revs growth) and a very positive view of the fundamentals. We root our views in conversations with 17 large Palantir customers and other checks and offer their unvarnished feedback in this report, which focuses more than we normally would on the core "what exactly does Palantir do?" question, in addition to unpacking the uplift from its Al-Data exposure.

Palantir Technologies (PLTR) continues to hold its lead in megamarkets of data analytics and AI with strong financial performance and value creation through strategic developments. In Q3 2024, Palantir reported a record net income of $144 million , the highest quarterly profit since its founding.

Palantir has a lot of potential but the current valuation already prices this in (and more). P/E Ratio: Current P/E ratio of 237.8 isn't sustainable.

Key Takeaways While government contracts were historically Palantir's primary revenue source, commercial adoption driven by AIP workshops is set to overtake revenue growth and become the largest segment. Palantir’s value-based pricing model allows the company to generate high margins and reinvest in product development.