
Shares of Denver-based software provider Palantir rose nearly 27% on February 4 following 2024 fourth quarter results featuring faster-than-expected growth and an optimistic forecast for the current quarter and the year 2025.
Having risen 368% in the last year and sporting a price-earnings ratio of 516, according to the Wall Street Journal, do shares of Palantir have more upside? If Wall Street analysts are right, the stock is about 26% too high. However, what matters most for the future of Palantir’s stock is whether the company can keep beating expectations and raising guidance.
That could happen – especially if Palantir – which counts Peter Thiel among the company’s early investors – can harness artificial intelligence to make its defense and commercial customers better off.
Palantir fourth quarter performance and prospects.
Palantir stock rose to a record after reporting stronger-than-expected fourth-quarter results and guidance driven by AI, noted CNBC. The company’s commercial revenue increased 64% in the quarter while U.S. government sales rose 45%. Momentum at Palantir is unlike anything that has come before, CEO Alex Karp said.
Here are the key numbers: