Palantir’s stock price jumped a record 28% shortly after its earnings report was released on Monday, sending the company’s market capitalization soaring to over $240 billion. This surge makes Palantir the 47th “mega-cap” publicly traded American company valued at $200 billion or more.
The company greatly exceeded expectations in its quarterly results and financial outlook, with record $0.14 adjusted earnings per share and $828 million in revenue beating consensus analyst estimates by 26% and 7%, respectively. Palantir’s guidance for 2025 called for about 30% respective top and bottom line growth.
Palantir’s rise has been meteoric, with its stock value increasing over 10 times its original value two years ago. The company provides AI-enabled data analytics insights to its customers, which include Amazon and the Department of Defense. This is largely due to government contracts, accounting for 55% of the company’s revenue in 2024.
Billionaire CEO Alexander Karp’s net worth increased by $1.2 billion, making him one of the richest people in the world. Palantir co-founder Peter Thiel also saw his fortune jump by $2.4 billion.
However, not all analysts are optimistic about Palantir’s future prospects. Deutsche Bank analyst Brad Zelnick said that the company’s valuation is “nearly impossible to grow into,” especially at this scale. He has a sell rating on the stock.
Source: https://www.forbes.com/sites/dereksaul/2025/02/04/palantir-stock-soars-as-much-as-28-to-all-time-high-becoming-200-billion-company