Palantir Technologies (NASDAQ: PLTR) has become the best-performing member of the S&P 500, with shares jumping 340% in 2024 and another 49% in the first two months of this year. The company’s artificial intelligence platform AIP is driving demand, and its momentum has carried into the current year.
Despite Wall Street’s initial bearish sentiment, analysts have made significant upward revisions to their earnings forecasts and fair value estimates for Palantir. Dan Ives at Wedbush Securities predicted that Palantir could reach a trillion-dollar market capitalization in two or three years.
In its fourth-quarter report, Palantir crushed analyst expectations, with revenue rising 36% to $828 million and non-GAAP earnings increasing 75% to $0.14 per diluted share. The company also provided stronger-than-expected guidance for first-quarter revenue growth of 36%.
Analysts now expect Palantir’s adjusted earnings to increase by 31% annually in 2026, with a fair value estimate of $92.50 per share, representing a 106% increase from its previous target.
While the stock is still expensive at 270 times adjusted earnings, Ives’ prediction suggests that Palantir could hit the trillion-dollar mark. Long-term investors can buy a small position now, but it’s recommended to wait for better buying opportunities and build a position over time if the investment thesis remains sound.
Consider seeking alternative investments with proven track records, such as Nvidia, which has delivered remarkable returns in the past. The Motley Fool Stock Advisor team identified the 10 best stocks to buy now, but Palantir wasn’t included in their list.
Source: https://finance.yahoo.com/news/palantir-stock-investors-just-got-090000241.html