Palantir: It's Like Nvidia In 2022 (Rating Upgrade)

(18min)

Summary

  • Palantir's Q4 FY24 revenue surged 36% YoY, beating expectations by 7.6%, with FY25 revenue projected to grow above 31%, driven by AIP's 54% YoY growth.
  • Palantir's US Commercial and Government segments saw accelerated growth, with US Commercial revenue up 64% YoY and Government revenue up 45% YoY.
  • Despite a high valuation, Palantir's earnings are expected to grow at a 50% CAGR over the next three years, with revenue growing in the 30%+ range, justifying a premium price target of $136.
  • With declining cost per token for inference set to explode compute demand and organizations building with AI, Palantir is at an inflection point in the AI Revolution, warranting a “buy "rating.

Palantir Technologies

hapabapa

Introduction & Investment Thesis

When I last wrote about Palantir (NASDAQ:PLTR), I had said that the company would have to work incrementally harder in Q4 to beat its revenue target in order to keep its revenue

I am Amrita and I write primarily about growth software stocks. 

I recently joined The REIT Forum and if you are looking for more investment ideas like this one, get them exclusively at The REIT Forum with access to our subscriber only portfolios.


 

This article was written by

3.95K Followers

Amrita runs a boutique family office fund in beautiful Vancouver, where she leads the investment strategy for the family fund. The fund's objective is to invest capital in sustainable, growth-driven companies that maximize shareholder equity by meeting their growth-oriented goals. In addition, she also started her own award-winning newsletter, The Pragmatic Optimist which focuses on portfolio strategy, valuation, and macroeconomics in concert with her husband Uttam Dey who is also a contributor on Seeking Alpha. Prior to cofounding her fund, Amrita worked for 5 years in high-growth supply-chain start-ups in downtown San Francisco, where she led strategy. During her time in the Bay Area, she also worked with venture capital firms and start-ups, where her efforts led her to grow the user acquisition business. During this time, she was introduced to investment portfolios and was able to maximize returns for clients during the pandemic. The cornerstone of Amritas work rests on democratizing financial literacy for everyone and breaking down financial jargon and complex macroeconomic concepts into formats that are easily digestible but more empowering than the typical investment thesis. Her newsletter has been featured as the Top Newsletter in Finance on popular newsletter platforms and she aims to bring her ideas to Seeking Alpha as well.

Analyst’s Disclosure:I/we have a beneficial long position in the shares of PLTR either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

Recommended For You

About PLTR Stock

SymbolLast Price% Chg
Market Cap
PE
Yield
Rev Growth (YoY)
Short Interest
Prev. Close
Compare to Peers

More on PLTR

Related Stocks

SymbolLast Price% Chg
PLTR
--
OSZAR »