Palantir Surges 66% in 2024 on Strong Revenue, Raises 2025 Guidance

Palantir Technologies has experienced a remarkable stock rally, rising nearly fivefold over the past year and reaching a record high of $130 per share, making it the 25th largest company in the S&P 500. The firm's strong financial performance is highlighted by a 39% revenue increase to $884 million in Q1, with U.S. commercial revenue surging 71%, alongside raised full-year guidance projecting about 36% revenue growth in 2025. Palantir’s partnership with Bain & Company aims to accelerate AI adoption for enterprises, leveraging Palantir’s Artificial Intelligence Platform and Bain’s industry expertise to deliver rapid business impact. Despite this bullish momentum and raised price targets from some analysts, the consensus broker rating remains cautious with an average “Hold” or “Reduce,” reflecting concerns over Palantir’s high valuation—trading at over 265 times adjusted earnings and more than 100 times sales, levels historically followed by substantial declines in comparable software stocks. Market sentiment shows a slight positive tilt, but valuations and mixed analyst opinions suggest potential downside risks. CEO Alex Karp emphasizes strong growth and significant government contracts as drivers of continued expansion.