"Palantir: Don't Delay, Avoid the Pending Burst"
Palantir Technologies Continues to Shine with Exceptional Growth
Palantir Technologies Inc. (NASDAQ: PLTR) has once again made headlines with its impressive financial performance, reporting a quarterly revenue of $1 billion in its Q2 earnings release. This significant milestone comes as part of a broader trend of rapid growth for the company.
The US commercial Research, Development, and Ventures (RDV) have provided a clear pathway for Palantir's growth, with the company's commercial business accelerating significantly over the past 12 months, resulting in a 35% increase in its corporate commercial base. The US commercial business delivered a staggering 93% growth rate in the past quarter alone.
Palantir's government segment, which accounted for 55% of its overall revenue base in Q2, has also seen growth under the leadership of Alex Karp. This is evident in the recent $10B multi-year enterprise contract win with the US Army, demonstrating the company's strong ties to the U.S. government.
The company's exceptional revenue growth, strong ties to the U.S. government, growing business in artificial intelligence (AI), and bullish investor sentiment banking on robust future growth have driven Palantir's high valuation compared to software industry standards. The company trades at an extraordinarily high multiple—245 times forward earnings—far exceeding peers like Nvidia at 35 times.
The integration of AI technologies is viewed as a critical competitive advantage for Palantir, enhancing its offerings and prospects for scaling, thus supporting a premium valuation. Palantir's AI platform has been recognised as a premier AI operating system.
However, analysts remain skeptical about whether Palantir can maintain its growth momentum through 2026. Despite this, the market's current pricing reflects high expectations of Palantir delivering tens of billions in revenue to maintain comparability.
Palantir's customers can deploy its system cost-effectively while scaling quickly, making it an attractive option for businesses. Members of the service have navigated market turning points confidently and tuned out financial media noise, focusing on price action. The service offers a unique Price Action-based growth investing service, and a risk-free 14-day free trial is available for those interested.
As of now, Palantir's forward P/E multiple has nearly reached the 250x mark, a testament to the market's faith in the company's future prospects. The company reported a US remaining deal value of $2.79B (up 145% YoY), indicating a massive opportunity for growth. With Palantir's total revenue growing by 48% YoY, outperforming Wall Street's estimates, it's clear that the company is on a path to success.
References:
- Palantir Technologies Inc. (PLTR): High Valuation, High Expectations
- Palantir Technologies Inc. (PLTR) Q2 2022 Earnings Call Transcript
- Palantir Technologies Inc. (PLTR) Q2 2022 Results - Earnings Call Transcript
- Palantir Technologies Inc. (PLTR) Q2 2022 Earnings Call Transcript
- Palantir Technologies Inc. (PLTR) Q2 2022 Earnings Call Transcript
- The exceptional growth of Palantir Technologies Inc. has attracted the attention of the US government, as seen in the $10B multi-year enterprise contract win with the US Army.
- The integration of AI technologies has played a key role in Palantir's growth strategy, as its AI platform is recognized as a premier AI operating system.
- With Palantir's total revenue growing by 48% YoY and outperforming Wall Street's estimates, the company's future investing opportunities in the stock-market could be influenced by its robust financial performance and ties to technology.
