Palantir Technologies, with a stock price that has surged 900% since January 2023, is gaining attention as a potential trillion-dollar company. The company’s Artificial Intelligence Platform (AIP) has driven profitable revenue growth, and its technology can capture AI’s widespread impact across various industries.
The US market drives Palantir’s growth, with U.S. revenue growing 44% in the third quarter. This growth, combined with a significant number of potential customers, makes Palantir an attractive investment opportunity. However, reaching a $1 trillion valuation would require substantial growth, including revenue exceeding $7 billion by 2030.
Analysts project Palantir’s revenue could reach $7 billion to $15 billion in the next five years, depending on growth rates. To achieve this, Palantir’s stock price-to-sales ratio would need to be significantly high, potentially similar to its peak during a market bubble. This raises concerns about the sustainability of such valuations.
While it is unlikely that Palantir can reach a $1 trillion valuation by 2030, the odds of outpacing the market overall are still within reach. As with any investment, there are risks involved, and investors should consider these before making a decision.
Source: https://www.fool.com/investing/2024/11/26/will-palantir-technologies-trillion-dollar-stock