logo
Could Buying Palantir Today Set You Up for Life?

Could Buying Palantir Today Set You Up for Life?

Yahooa day ago

Palantir stock has been a top performer, and the company's earnings have soared too.
Though the company's prospects look bright, investors have worried about the stock's high valuation.
10 stocks we like better than Palantir Technologies ›
Palantir Technologies (NASDAQ: PLTR) has been around for more than 20 years and in its earlier days was most known for software contracts with government clients. But in recent times, commercial customers have offered this player an exciting new revenue stream, and today, with both government and commercial growth soaring, the future looks bright.
Investors have recognized this, and they've been piling into Palantir shares for quite some time. Last year, the stock surged 340%, posting the best performance in the S&P 500. In fact, Palantir's share price has climbed so far and so fast that it's found itself at an eye-popping valuation. Still, earnings have continued to march higher and haven't shown any signs of slowing.
Considering this, could buying Palantir today, even at the current valuation, set you up for life? Let's find out.
So, first, a quick summary of Palantir's business. The company, through its software platforms, helps customers aggregate often the most disparate of data to make better use of it. Palantir has integrated artificial intelligence (AI) into this process and two years ago launched its Artificial Intelligence Platform (AIP). This has made the company one of the superstars of the AI boom as both governments and commercial customers raced to get in on this often game-changing tool.
AIP can be useful in everything from battlefield operations, immediately identifying risks and implementing key plans, to business needs -- for example, customer United Airlines is using AIP for predictive maintenance, helping the airline avoid delays and millions of dollars in costs. How did Palantir reach so many customers so quickly with AIP? The company launched AIP bootcamps, sessions that allow potential users to go from zero to a use case within hours -- so they can see exactly how AIP could benefit their businesses.
All of this has translated into explosive revenue growth, particularly as commercial customers discover that Palantir is no longer a business that primarily serves governments -- instead, its technology has broad applications that also are valuable in the commercial world. In the most recent quarter, U.S. commercial revenue advanced more than 70% to $255 million, and the U.S. commercial business delivered its most valuable quarter, booking total contract value of $810 million. That's up 183% from the year-earlier period.
As I mentioned, this is as government revenue continues to climb in the double digits quarter after quarter, so Palantir has conserved the growth of its main revenue stream -- the government business -- and added to it with a newer and high-potential revenue stream -- I say "high potential" because companies across industries are aiming to apply AI to their businesses, and Palantir's AIP makes it easy for them to do this.
Importantly, Palantir isn't only focused on revenue gains, but the company also has struck a fantastic balance between growth and profitability -- as seen in its Rule of 40 score. Scores of 40% or higher indicate a software player has balanced these two priorities well, so Palantir's delivery of a score of 83% shows the company is hitting it out of the park. Only about a third of software companies meet this rule, according to McKinsey research, and this further highlights Palantir's accomplishment.
All of this is very positive, but now let's look at the one point that's been a thorn in the side of Palantir and its investors: and that's the stock's valuation. Today, it trades for an eye-popping 219 times forward earnings estimates, making some investors question whether they should buy the stock or even stay invested if they've already bought it. At such a valuation, the risk is any disappointment could hurt stock performance.
So, considering all of this, could this unstoppable (at least so far) stock set you up for life? There actually are two questions here, and the first is: Is Palantir a buy?
If you're a value investor, you're sure to find a stock better suited to your strategy elsewhere. But if you're a growth investor and aim to hold on for at least five years, even at today's high valuation it's worth picking up a few Palantir shares. The forward price-to-earnings ratio we looked at, above, considers potential earnings next year -- but not over the long term. Palantir is well positioned to gain as the AI boom continues over the next several years, so even if the stock dips at certain points here and there, you still may benefit greatly from an investment today.
As for setting you up for life, this growth stock could help -- but it's never a good idea to depend on one stock on its own to do the whole job. It's much too risky to put all of your eggs in one basket. Instead, supercharge your wealth-building power by investing in several quality stocks and holding on for the long haul.
Before you buy stock in Palantir Technologies, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Palantir Technologies wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $669,517!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $868,615!*
Now, it's worth noting Stock Advisor's total average return is 792% — a market-crushing outperformance compared to 173% for the S&P 500. Don't miss out on the latest top 10 list, available when you join .
See the 10 stocks »
*Stock Advisor returns as of June 2, 2025
Adria Cimino has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Palantir Technologies. The Motley Fool has a disclosure policy.
Could Buying Palantir Today Set You Up for Life? was originally published by The Motley Fool

Orange background

Try Our AI Features

Explore what Daily8 AI can do for you:

Comments

No comments yet...

Related Articles

Our Favorite Solar Wireless Outdoor Camera Drops on Amazon, Now Cheaper Than Black Friday and Prime Day
Our Favorite Solar Wireless Outdoor Camera Drops on Amazon, Now Cheaper Than Black Friday and Prime Day

Gizmodo

time14 minutes ago

  • Gizmodo

Our Favorite Solar Wireless Outdoor Camera Drops on Amazon, Now Cheaper Than Black Friday and Prime Day

This is the easiest outdoor security camera to use on the market. Outdoor security cameras have transformed home safety and offer peace of mind and a sense of control – except for those nagging issues of battery life and the hassle of running cables. That's where the eufy Security SoloCam S340 steps in, breaks those barriers and sets a new standard for wireless surveillance. Today only, this top-rated product can be had for an all-time low of $159 on Amazon, a 20% discount from its regular $199 list price. See at Amazon Our Favorite Brand for Home Security eufy is a subsidiary of Anker and it has gained a reputation for greatness in the field of smart home. The SoloCam S340 is one product among many that showcases their innovation in terms of design and user experience. This camera is designed to address the two main frustrations with outdoor security cameras: 1) change batteries too often or 2) use a wired setup which may be limited in any direction. With its wireless connectivity and solar-powered battery, you can position the camera anywhere outside your home far inside your garden, front of your side house, or even at the back end of your home. It's easy to install: no extensive wiring is required, and you don't even need to hire a professional. In only five minutes, you'll have an operational and high-tech guard for your home. One of the major attractions that this SoloCam S340 has is an improved dual-camera system that allows for ultra-sharp 3K resolution as far away as 50 feet. This way, you will be able to see all that's happening outside your home whatever time of day it is. The 8× zoom with this camera lets you capture a close-up shot of anyone approaching your house so nothing escapes you. While the maximum resolution drops to 2K when using AI Tracking or Dual Views, the quality remains sharp and reliable for most home security needs. The SoloCam S340 also eliminates blind spots: Thanks to its 360° pan and tilt capabilities, you can monitor every corner of your property from a single, strategically placed camera. Whether you want to keep an eye on your front porch, backyard or driveway, this camera covers it all. The vertical installation option further enhances its versatility, allowing you to customize the viewing angle for maximum coverage. A second major advantage is the camera's solar operation: The easily removable built-in solar panel lets you install the camera and then forget it. No need to reach a ladder to replace batteries or to disconnect cables. The camera remains always powered and ready to protect your home and powered by clean energy. The eufy Security SoloCam S340 is a home security game-changer. Make sure you grab yours before it runs out of stock. See at Amazon

Apple Rolls Out AI-Driven iOS 26 at WWDC
Apple Rolls Out AI-Driven iOS 26 at WWDC

Yahoo

time15 minutes ago

  • Yahoo

Apple Rolls Out AI-Driven iOS 26 at WWDC

Apple (NASDAQ:AAPL) kicks off its AI and design revolution with iOS 26, unveiling a Liquid Glass interface and deeper ChatGPT integrations across core apps at WWDC 2025. Apple's vice president of Human Interface Design, Alan Dye, described iOS 26 as the broadest update ever, featuring Liquid Glassa dynamic material that marries glass-like optics with fluid responsivenessapplied universally to iPhone, iPad, Watch, TV and Mac. Native apps from Camera and Safari to Messages and Wallet get fresh layouts that adapt to context, while CarPlay and Maps gain streamlined controls. On the AI front, Apple amplifies its partnership with OpenAI by embedding ChatGPT into Image Playground and Genmoji, letting users generate bespoke images and emojis from text or photoswith full user consent. Visual Intelligence now lets you ask ChatGPT about anything on your screen without switching apps, and Live Translations delivers real-time captions and translations in Messages, FaceTime and Phoneeven with non-iPhone users. Craig Federighi, SVP of Software Engineering, announced expanded Siri personalization and an open Foundation Models Framework that enables any third-party app to tap into Apple Intelligence. Why It Matters: iOS 26's Liquid Glass aesthetic and deep AI mash-up could drive device upgrade cycles and boost services revenue as Apple rolls out paid AI features. It underscores Apple's strategy to monetize AI through its hardware moat rather than by chasing model supremacy. This article first appeared on GuruFocus.

Posted Jun 10, 2025 at 8:51 AM EDT 0 Comments
Posted Jun 10, 2025 at 8:51 AM EDT 0 Comments

The Verge

time18 minutes ago

  • The Verge

Posted Jun 10, 2025 at 8:51 AM EDT 0 Comments

Ayaneo's next modernized Nintendo DS has a larger second screen. Although the original dual-screen Ayaneo Flip was a flop, the company confirmed it was committed to the line and today announced its new Flip 1S DS. The most obvious upgrade is a 7-inch 1080P OLED main screen with a larger 4.5-inch secondary LCD touchscreen with a 1620×1080 pixel resolution. It will be powered by an AMD Ryzen AI 9 HX 370 processor, run Windows 11, and feature TMR joysticks, but pricing and availability isn't known yet.

DOWNLOAD THE APP

Get Started Now: Download the App

Ready to dive into the world of global news and events? Download our app today from your preferred app store and start exploring.
app-storeplay-store