The tool, which looks for and analyzes hidden patterns in deep data sets, has been used for “predictive policing” and has drawn some criticism because of it. In the third quarter of 2023, for instance, the number of users on AIP nearly tripled. Palantir also points out that close to 300 organizations have deployed AIP within a short span of just five months since the platform’s launch. Even better, Palantir is looking to aggressively take its AIP to commercial customers with the help of boot camps. The platform allows enterprises to leverage machine learning and large language models to drive business operations decisions.
- The stronger growth in the commercial customer count also led to a robust 23% year-over-year increase in Palantir’s commercial revenue in the last reported quarter to $251 million.
- For 2021, Palantir said it expects revenue growth of greater than 30%.
- In the acquire phase, the company offers initial implementation at little or no cost to the new customer and the customer is considered to remain in this phase if its revenue is less than $100,000 in the respective year.
- The Motley Fool owns shares of and recommends Palantir Technologies Inc.
- Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.
- For example, the company has made a number of interesting strategic investments in SPACs and is in the early stages of investing heavily in a larger sales force.
It means, for example, that to get detailed info on someone, all you would need is a name and license plate number and Palantir does the rest. It performs a deep search of https://bigbostrade.com/ all criminal, financial, medical, communication, and clandestine agency records on the target. You’ll need to have a brokerage account to make trades to purchase stock.
The palanteri are indestructible crystal globes used for seeing across great distances. Palantir has come under criticism due to its partnership developing software for U.S. Palantir has responded that its software is not used to facilitate deportations.
‘Don’t Pull the Trigger,’ Says Brian White About Palantir Stock
That won’t be surprising as Palantir is considered to be the leader in the AI software platforms market, which is expected to grow rapidly in the long run. However, the business performance is only one component of the buy case. Based on adjusted earnings, the stock is trading at a price-to-earnings ratio of 69, which is expensive, especially for a company that’s only growing revenue by high-teen percentages.
The facts discussed here and much other information on Zacks.com might help determine whether or not it’s worthwhile paying attention to the market buzz about Palantir Technologies Inc. However, its Zacks Rank #3 does suggest that it may perform in line with the broader market in the near term. Here’s a high-quality portfolio that’s beaten the market consistently since the end of 2016. Palantir was named one of CNBC’s Disruptor 50 companies seven times, most recently ranking No. 34 in 2019.
Palantir also reported its fourth straight quarter of positive net income under generally accepted accounting principles (GAAP), making it eligible to join the S&P 500. Excitement over the potential for AI has helped drive Palantir stock higher this year, but that’s not the only reason the software stock has nearly tripled. Palantir is committed to delivering a profit, and it has done so by controlling its costs and continuing to grow the top line.
In a sector as volatile as big data, it’s essential to look at the company’s finances, products, customers and long-term objectives. It is without question that Palantir stock is expensive, therefore many investors are questioning its current valuation. Before the company turned profitable, retail investors and institutions were buying up the stock hand over best time of day to trade forex fist during the Covid pandemic. Get stock recommendations, portfolio guidance, and more from The Motley Fool’s premium services. Remember though, that there are many ways to estimate a company’s value, and a DCF is just one method. If you still have some burning questions about this type of valuation, take a look at the Simply Wall St analysis model.
In a statement provided to the New York Times, the firm implied that because its contract was with HSI, a division of ICE focused on investigating criminal activities, it played no role in deportations. However, documents obtained by The Intercept show that this is not the case. According to these documents, Palantir’s ICM software is considered ‘mission critical’ to ICE. The S&P 500 closed out 2023 with a 24% gain, with Palantir rising more than 160%.
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The consensus among Wall Street equities research analysts is that investors should “reduce” PLTR shares. For comparison, C3.ai is anticipated to clock just 15% revenue growth in the current fiscal year to $306 million. The good part is that analysts are anticipating an uptick in the company’s growth from the next fiscal year. Palantir Technologies’ full-year 2023 revenue outlook of $2.22 billion suggests that its top line is on track to increase 16.5% this year. But for a stock that’s trading at 17 times sales, investors may be having second thoughts about whether Palantir is worth investing in right now, given the rich valuation. The terrific gains that these stocks delivered lately may seem a tad surprising at first, considering the pace at which Palantir and C3.ai are growing.
That being said, the company has a unique product that no doubt serves various clandestine agencies and government contracts are often very lucrative. Ultimately, I feel that it’s a good — albeit risky — long-term addition to your portfolio, but only if you don’t mind turning a blind eye to the company’s shady dealings. Long-term investing operates on the idea of compound interest, or watching your investments grow with time. That means weathering potential crashes or market drops that can make short-term dents in your portfolio.
Notably, the company’s commercial business, which had been a mixed performer over the last year, saw revenue grow by about 28% year-over-year, as sales to customers in the U.S. soared. This marks an increase from a year-over-year growth rate of about 19% during Q1. Although Palantir’s bread-and-butter government revenue actually grew much faster at 66% year-over-year, driven by new deals with the U.S, investors typically pay a lot more attention to the commercial side of Palantir’s business. This is because the commercial business is more transparent compared to the government vertical, and valuation multiples for commercial businesses are also usually higher than for government contractors.
In the acquire phase, the company offers initial implementation at little or no cost to the new customer and the customer is considered to remain in this phase if its revenue is less than $100,000 in the respective year. In the next stage, Expand, Palantir continues to further expand the implementation, pinpointing specific pain points and challenges; this phase is entered once revenue from the customer exceeds $100,000. The customer enters the scale phase once everything is implemented and configured and the client adds their own software to sit atop Palantir’s platform. We believe everyone should be able to make financial decisions with confidence. © 2024 Market data provided is at least 10-minutes delayed and hosted by Barchart Solutions.
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A simple, equally-weighted average return of all Zacks Rank stocks is calculated to determine the monthly return. The monthly returns are then compounded to arrive at the annual return. Only Zacks Rank stocks included in Zacks hypothetical portfolios at the beginning of each month are included in the return calculations. Certain Zacks Rank stocks for which no month-end price was available, pricing information was not collected, or for certain other reasons have been excluded from these return calculations.
Palantir Technologies, Inc. is a holding company, which engages in the development of data integration and software solutions. The Commercial segment offers services to clients in the private sector. The Government segment provides solutions to the United States (US) federal government and non-US governments. The firm offers automotive, financial compliance, legal intelligence, mergers and acquisitions solutions.
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If you already have a diversified portfolio and have some cash to spare, think about how much you’re willing to wager on Palantir. You can start by learning about Palantir’s products to understand their use. This should also give you a better sense of how the company stacks up against its competitors.