Palantir Technologies (PLTR) has experienced significant growth over the past year, with shares rising 510% as of February 3, 2024. The company’s data analytics and software-platform provider’s improving growth profile can be attributed to its AI offerings.
In its fourth-quarter 2024 results, Palantir crushed Wall Street’s expectations, with shares surging 23%. Despite trading at an expensive valuation, the market is rewarding the company with a premium price due to its strong performance in the AI software-platforms space.
Palantir has one of the best AI platforms in the market, according to third-party research. The platform enables customers to integrate generative AI into their operations, allowing for real-time decision-making and improved efficiency. This is fueling new customer acquisition and expansion opportunities with existing customers.
The company’s customer count increased by 43% year-over-year in Q4, while its net dollar retention rate rose 12 percentage points to 120%. The rapid growth led to a remarkable 40% increase in remaining deal value (RDV) to $5.4 billion, surpassing the 36% year-over-year revenue growth.
Palantir’s revenue pipeline is expected to drive strong growth in 2025, with a slight acceleration in revenue growth projected at over 30%. While its valuation may be expensive, the company’s favorable unit economics and solid growth prospects justify the price.
Investors can consider adding Palantir to their portfolios as a potential long-term growth pick, despite the high valuation. The company’s ability to sustain terrific levels of earnings growth in the long run makes it an attractive option for those seeking life-changing returns.
Source: https://www.fool.com/investing/2025/02/09/prediction-buying-palantir-stock-today-could-set-y