Palantir (NYSE: PLTR) stands out as one of the most sizzling artificial intelligence (AI) stocks on Wall Street. Despite its shares soaring by 213% in the past 12 months, there’s a notion among investors that it might be too late to jump on the Palantir bandwagon.
Here’s why that assumption might not hold water.
Palantir is just getting started
For any company navigating the early stages of its lifecycle, numerous hurdles come into play:
- Convincing investors and customers about the product’s potential.
- Presenting a captivating vision that resonates with Wall Street.
- Demonstrating, through financial results, the ability to translate potential into tangible financial success.
In this context, Palantir, specializing in AI-powered data analysis, seems to be making significant strides on all fronts.
Firstly, Palantir’s customer count is experiencing remarkable growth. The chart below illustrates the addition of 220 customers in the last two years, marking a substantial 79% increase in its total customer base. This surge indicates a strong demand from organizations, many grappling with the challenges of organizing and comprehending vast amounts of data, showcasing a keen interest in leveraging Palantir’s data analysis platform for gaining insights and streamlining operations.
On the second front, Palantir’s CEO, Alex Karp, is emerging as a notable figure on Wall Street. Known for his straightforward and memorable approach, Karp doesn’t beat around the bush. He boldly predicts a “very, very strong year [ahead], especially in U.S. commercial.”
Moving on to the third point, the latest earnings results from Palantir validate its promises with tangible actions. In the quarter ending on December 31, 2023, the company witnessed a remarkable 20% year-over-year surge in revenue, accompanied by a staggering 203% jump in earnings.
In essence, Palantir appears to be in the early phases of its journey, not on the brink of fading away. Of course, investors should exercise caution, acknowledging the inherent volatility of growth stocks like Palantir. However, for those with the patience to weather the inevitable ups and downs, Palantir presents itself as a growth narrative worth keeping in mind.
