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Palantir Technologies (PLTR) has drawn fresh attention after recent trading left the stock with a 1 day return of 2.5% and a 7 day gain of 14.3%, against weaker month and past 3 months moves.
Those swings come as investors weigh a business generating US$4.48b in revenue and US$1.63b in net income, split across government and commercial customers, and heavily concentrated in the United States.
See our latest analysis for Palantir Technologies.
The recent 1 day and 7 day share price gains come after a weaker 30 day and 90 day share price return. However, the 1 year and multi year total shareholder returns remain very large, suggesting longer term momentum is still in place.
If this recent move in Palantir has your attention, it may be useful to see what else is moving by checking a curated list of 38 AI infrastructure stocks
So, with Palantir generating US$4.48b in revenue, US$1.63b in net income and trading at US$146.39, is the current valuation leaving upside on the table, or are markets already pricing in future growth?
According to the most followed narrative, Palantir’s fair value sits at $96 against a last close of $146.39, which builds in a sizeable premium.
Palantir’s market capitalization has seen a remarkable growth from $13.365 billion in 2022 to $183.495 billion in 2024. This steep increase, particularly the 391.13% jump from 2023 to 2024, suggests a high level of market optimism. The enterprise value (EV) follows a similar trend, indicating the market’s high valuation of Palantir’s future potential.
Want to see what sits behind that optimism and the premium to fair value? The narrative leans on fast revenue gains, rising margins and a future profit multiple usually reserved for market favorites.
Result: Fair Value of $96 (OVERVALUED)
Have a read of the narrative in full and understand what’s behind the forecasts.
However, this premium view could be tested if government contract spending tightens or if competitors in data analytics and AI win key deals away from Palantir.
Find out about the key risks to this Palantir Technologies narrative.
With sentiment this split, it helps to move quickly, review the key numbers for yourself and decide how much optimism you share in those rewards, starting with 2 key rewards.
If Palantir has you thinking more seriously about your portfolio, now is the time to broaden your watchlist and spot opportunities you would regret missing later.