Despite the good results, two analysts have very different views on Palantir’s future. Dan Ives from Wedbush is optimistic. He said, “You could print this press release off, frame it, and put it in the Louvre.” He believes the company will reach a $1 trillion market cap in the next 2 to 3 years.
On the other hand, Brent Thill from Jefferies is more cautious. He acknowledged Palantir’s solid performance but raised concerns about its high valuation.
Palantir has met or exceeded Wall Street’s earnings and revenue expectations for seven quarters straight. However, some analysts point out that its valuation is about 65 times its revenue, similar to other high-flying tech companies like Snowflake Inc.
“This is a retail-driven story,” Thill said. “There’s not a single institutional investor I talk to that even talks about this.” Ives disagreed, arguing that institutional investors are missing out on one of the most important companies in AI.
Why It’s Important:
Palantir posted first-quarter revenue of $883.86 million, exceeding analysts’ expectations of $862.83 million. The company also raised its full-year revenue guidance to between $3.89 billion and $3.90 billion, higher than previous estimates.
For the second quarter, Palantir expects revenue between $934 million and $938 million, again above analyst expectations. Its current market cap is $292.05 billion.
Palantir shares have increased by 64.61% this year and 390.96% in the past 12 months. On Monday, the stock fell 0.41% during regular trading and another 9.25% in after-hours trading, closing at $112.32.
Analysts have set a consensus price target of $69.76 for Palantir, based on opinions from 25 firms. Loop Capital has the highest target at $125 for March 13, 2025. Recent updates from RBC Capital, Morgan Stanley, and DA Davidson average a price target of $76.67, suggesting a potential drop of 31.74% from current levels.
According to Benzinga Edge Stock Rankings, Palantir has a strong growth score of 86.89%, highlighting its solid performance.