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Hey, what's up, everyone! Welcome back to the channel! Today, we’re diving into the buzz around Palantir Technologies, ticker symbol PLTR, which just dipped by one point six percent. Investors are split on this one – some are super hyped, while others are skeptical due to its high valuation versus its revenue growth and sluggish government business. But why is Palantir still grabbing headlines? It’s all about their killer data-gathering and analytics platform used by the U.S. government for major tasks like fighting terrorism and tracking COVID-19!
Recently, Palantir launched its Artificial Intelligence Platform and is now chasing the commercial market hard. Their U.S. commercial revenue skyrocketed forty percent year over year in the first quarter, hitting one hundred fifty million dollars. Plus, they added forty-one new U.S. commercial customers – that’s a nineteen percent bump from the previous quarter! This shows their workshops and demos are really paying off.
But here’s the twist – Palantir’s government business growth has slowed down. It grew nineteen percent in two thousand twenty-two, dipped to fourteen percent in two thousand twenty-three, and then picked up to sixteen percent in the first quarter of two thousand twenty-four. Overall, their revenue rose twenty-one percent, reaching six hundred thirty-four point three million dollars.
Now, some folks think Palantir isn’t growing fast enough to justify its high valuation. Their forward price-to-sales ratio is over seventeen, which is way above the norm for similar high-margin software companies. With a market cap of about forty-seven billion dollars, Palantir needs to multiply by over twenty times to hit that trillion-dollar mark. If they can keep growing revenue by twenty percent annually, they could reach around fifty billion dollars by two thousand forty, valuing them at about five hundred billion dollars. But, if they can ramp up to twenty-five percent growth, they might just hit that trillion-dollar target!
That’s a tall order, but with AI still in its early days and Palantir’s potential to become a key player for governments and businesses, it’s not impossible. They could also make some smart acquisitions to boost growth. Back in two thousand twenty and two thousand twenty-one, they saw over forty percent revenue growth, but it’s slowed down since then.
So, Palantir might seem overvalued right now, but don’t count them out just yet. Their tech is mission-critical, and with AI integration still developing, there’s massive potential. From government projects to helping companies like Kinder Morgan and Airbus, Palantir’s reach is wide and promising. Stick around and keep an eye on this stock – it could be a wild ride!
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Disclosure: This video was done by myself, and it expresses my own opinions. This is not investment advice or financial advice and it should not be taken as investment advice or financial advice in any way shape or form. I am not receiving any form of compensation for this video from the company or organization that I am expressing opinions about. This video is for entertainment and or educational purposes only.
