The End of Elon Musk…? (From Brownstone Research)
Palantir Stock Soars After Blowout Earnings Report 
Key Points - Palantir topped $1 billion in quarterly revenue for the first time in company history.
- U.S. commercial revenue surged 93% year-over-year, driven by a 43% increase in customer count.
- Despite Palantir’s high valuation, analysts continue to raise their price targets.
Palantir Technologies Inc. (NASDAQ: PLTR) is up over 8% the morning after the company delivered a blowout earnings report that had shareholders cheering and, for a moment, quieted its naysayers. There were many headlines to this report, but the most important was that Palantir hit $1 billion in revenue for a quarter for the first time. That was a 48% increase on a year-over-year (YOY) basis. The company also beat earnings expectations by three cents. Some additional highlights in the company’s report included: - U.S. revenue grew 68% YOY to $733 million.
- U.S. commercial revenue grew 93% YOY to $306 million.
- U.S. government revenue grew 53% YOY to $426 million.
- The company closed 157 deals of at least $1 million and 42 deals of at least $10 million.
- Customer count increased by 43% YOY.
- Adjusted operating income of $464 million, with a margin of 46%.
- $539 million in cash from operations, a margin of 54%.
- A rule of 40 score of 94.
The bullish enthusiasm wasn’t just about the current earnings report. Chief executive officer (CEO) Alex Karp remarked that he’s committed to the company growing its revenue by 10x over the next five years. Jeff Brown recently traveled to a ghost town in the middle of an American desert…
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And only one company here in the U.S. can mine this obscure metal. Click here to get the details on this virtual monopoly. Read ‘Em and Weep That was the message Karp shared with what he called the “Palantir haters” in an interview with CNBC. It’s easy to understand why Karp would celebrate a victory. The reasonable, but perhaps overstated, criticism of Palantir is that the stock is priced to perfection and then some. However, as the saying goes, it’s not bragging if you can do it. That’s exactly what Palantir continues to do. The report, by any objective measure, was spectacular. However, more importantly, the company’s forward guidance signals that it will continue to grow. In fact, referring to the “bombastic demand” for the company’s AI platform, Karp noted that the company is “growing faster than we are even able to grow, like we’re going to have to start turning away people...” The company isn’t turning away the federal government. In fact, Palantir announced that it has $10 billion in contracts with the government over the next 10 years. Watch the Floor, Not the Ceiling It’s common for analysts to reevaluate a company’s rating and price target after an earnings report. One of the most prominent Palantir bulls, Dan Ives of Wedbush, raised his price target on PLTR stock from $175 to $200. Investors will recall that Ives has referred to Palantir as the “Lionel Messi of AI.” Ives isn’t alone. Deutsche Bank upgraded Palantir from a Sell to a Hold while doubling its price target from $80 to $160. Cantor Fitzgerald and Piper Sandler also raised their price targets for PLTR stock. Seeing price targets move higher is encouraging. This is important for several reasons. First, it demonstrates that institutions are still buying Palantir stock, despite its high valuation. Second, it shows that retail investors continue to hold their shares, even while high. The Trump economy is back in full force, and it's creating huge opportunities for investors.
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That's why we put together this free report revealing the 7 MAGA stocks poised to thrive in 2025. 🔻 Download the full report now and get the inside track on these 7 powerhouse stocks. Is PLTR Stock a Buy? Technology stocks historically carry a premium valuation. However, Palantir is expensive by any measure, and the debate about Palantir’s valuation isn’t going to go away anytime soon. However, it’s important to note that many investors who passively add money to their 401(k) funds may already have exposure to PLTR stock. For example, PLTR stock is the 28th largest holding of the Vanguard S&P 500 ETF (NYSEARCA: VOO) as of this writing. However, this may not provide enough exposure for growth investors, who may require a more active approach. In this case, investors with a long-term focus on the company’s valuation can scale into the stock over time. Written by Chris Markoch Read this article online › Recommended Stories: 
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