Palantir Financial Report Confirms Strong AI Outlook, Stock Price Doubles This Year to Reach New High

The software company Palantir, known for its big data analytics, announced better-than-expected quarterly revenue and raised its revenue guidance for 2024, citing strong demand in the U.S. for its artificial intelligence software. As a result, the company's stock price surged to a record high.

Palantir was included in the S&P 500 index, and its stock has risen by 80% so far this year, driven by AI and defense-related issues.

Founded by Peter Thiel, Software Company Palantir

Palantir Technologies Inc. is a software company specializing in big data analytics. It was co-founded in 2003 by Silicon Valley investment tycoon Peter Thiel, Stephen Cohen, and Alex Karp, headquartered in Colorado, USA.

According to Bloomberg, Thiel made around $4 billion this year through his stake in Palantir. He reduced about one-third of his holdings this year, selling nearly 29 million shares in the third quarter.

Palantir's software platforms include Foundry, Gotham, and Apollo, which help organizations effectively integrate data, decision-making, and operations. Riding the wave of AI, the company offers various AI and machine learning solutions to assist enterprises and government agencies in data-driven decision-making. Palantir's AI platform integrates large language models (LLM) into users' private platforms, ensuring data security and operational compliance. Palantir's platform is widely used in industries such as defense, healthcare, and financial services.

US Driving AI Revolution

Palantir's third-quarter revenue grew by 30% to $7.255 billion, with a net profit of $144 million, setting a record for the company.

The company raised its 2024 revenue guidance to around $28.1 billion, up from analysts' previous estimate of $27.6 billion. A key driver of sales growth is the revenue from US commercial business. Palantir expects its US commercial revenue to grow by over 50% this year, surpassing $687 million.

Chief Revenue Officer Ryan Taylor stated that Palantir completed 104 transactions worth over $1 million in the third quarter, mainly attributed to its unconventional sales strategy of hosting training camps to teach clients how to use their tools.

US government business increased by 40% to $320 million annually. While the US intelligence community was one of Palantir's first clients, winning large government contracts took two decades, with partnerships now playing a larger role. Its products are currently used in all US military branches, as well as allies in Ukraine and Israel.

In August, Palantir expanded its partnership with Microsoft to enable the use of OpenAI in secure environments, one of several large language models deployed in its AI platform.

Retail Investors Love Palantir Too

Retail investors are among the most enthusiastic supporters of Palantir, with the company garnering support and affection similar to GameStop on the Reddit r/PLTR subreddit. Palantir CEO Alex Karp stated:

Our retail investors are my heart's love as well; you know I love you when you win.

After the launch of new AI tools last year, Palantir's stock price soared, becoming a popular stock in the tech frenzy. So far this year, driven by demand for its AI software and events such as its recent inclusion in the S&P 500 index, the company's stock has risen over 200%.