Latest news with #PLTR
Globe and Mail
3 days ago
- Business
- Globe and Mail
Palantir Just Hit a Record High. What's the Smart Move Now?
Key Points The tech company's revenue growth rate accelerated in Q1. Palantir's commercial business in the U.S. is seeing explosive growth. The stock's wild valuation leaves no room for error. 10 stocks we like better than Palantir Technologies › Data and artificial intelligence company Palantir (NASDAQ: PLTR) seemed to defy gravity in 2024. Shares more than quadrupled, rising a staggering 340%. With such an incredible rise, you'd be forgiven for guessing that the stock would cool off in 2025. But, so far, the opposite is true. Shares are heating up, rising by more than 105% year to date as of this writing. This has given the tech stock a gain of approximately 800% since the start of 2024. With shares trading at record highs. What should investors do? Does it make sense to buy more shares and hope the momentum continues? Or should investors take a more cautious approach and hold or even sell the stock? Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Learn More » Soaring sales One thing Palantir really has going for it is its top-line growth. The tech company posted first-quarter revenue of $884 million, up 39% year over year. Highlighting the company's momentum, this was an acceleration from 36% year-over-year growth in the previous quarter. Fueling Palantir's first quarter of 2025 was 55% year-over-year growth in U.S. revenue. Accounting for $628 million of the quarter's total revenue, the U.S. market is vital for Palantir. Supporting this market was a 71% year-over-year increase in commercial revenue and a 45% jump in government revenue. Zooming out to all of the company's markets, Palantir said in its first-quarter update that it closed 139 deals worth $1 million or greater, 51 deals worth at least $5 million, and 31 deals worth $10 million or more. With these strong results now behind it, management had the confidence to raise full-year revenue guidance. The company said it now expects 2025 revenue to be between $3.890 billion and $3.902 billion. This compares to revenue of about $2.9 billion in 2024. The midpoint of management's 2025 revenue guidance range, therefore, assumes about 36% growth. This impressive top-line growth is bolstering profits. Palantir's first-quarter net income was approximately $214 million, more than double its profit of about $106 million in the year-ago quarter. Comments from Palantir co-founder and CEO Alexander Karp in the company's first-quarter earnings call suggest he believes the company is still in its early innings. "We are in the middle of a tectonic shift in the adoption of our software, particularly in the U.S..." Karp noted. "We are delivering the operating system for the modern enterprise in the era of AI." A valuation problem While Palantir's top-line momentum is certainly impressive, there's one big problem for investors: The market seems to have already priced in more rapid growth for years to come. Today, Palantir's market capitalization sits at about $365 billion -- more than 93 times the high end of management's guidance range for full-year 2025 revenue. Using the company's trailing-12-month sales, Palantir currently has a price-to-sales ratio of 123. This would be a high figure even for a price-to- earnings ratio. And what is Palantir's price-to-earnings ratio? It's 672. Yes, you heard that right. It's safe to say that investors have already bid up the stock to a level that prices in the most optimistic assumptions for this company. So, what should investors do? The decision is a personal one -- one that you'll have to make on your own. However, if I owned the stock, I'd sell. And for those who don't own shares, I'd avoid them like the plague at this price. Of course, I could be wrong. It's always possible that Palantir exceeds even my most bullish assumptions. Still, I believe there are likely better places with less risk and greater upside potential for investors to allocate their capital. Palantir is a great company. But expectations are simply too high. Investors would be wise to wait to see if they can buy shares at a better entry price. Should you invest $1,000 in Palantir Technologies right now? Before you buy stock in Palantir Technologies, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks 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 $652,133!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $1,056,790!* Now, it's worth noting Stock Advisor's total average return is 1,048% — a market-crushing outperformance compared to 180% for the S&P 500. Don't miss out on the latest top 10 list, available when you join Stock Advisor. See the 10 stocks » *Stock Advisor returns as of July 15, 2025
Business Insider
3 days ago
- Business
- Business Insider
‘A Make or Break Moment,' Says Top Investor About Palantir Stock
Palantir (NASDAQ:PLTR) stock continues to spark debate among investors. While the company is delivering impressive results, driven by a rapidly expanding client base across both public and private sectors, its soaring valuation has raised eyebrows. PLTR now trades at multiples more than 10–20× above typical software peers, prompting questions about how much higher it can realistically go. Elevate Your Investing Strategy: Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence. Make smarter investment decisions with TipRanks' Smart Investor Picks, delivered to your inbox every week. That kind of meteoric rise places investors in a tricky predicament – one can admire the company's trajectory yet hesitate to buy in at such elevated levels. Top investor James Foord articulates this tension well, noting that while Palantir's story remains compelling, the narrative could shift dramatically if upcoming earnings fail to meet the market's lofty expectations. 'Stories and sentiment can change, and the next earnings could be the catalyst for this,' explains the 5-star investor, who ranks among the top 2% of TipRanks' stock pros. Yet, for now, the prevailing sentiment remains optimistic. Foord doesn't necessarily foresee an imminent drop. Instead, he emphasizes the market's broader enthusiasm around Palantir and argues that the company could eventually be crowned a member of the 'Magnificent 7' tech elite. Foord attributes much of Palantir's rise to a potent combination of factors: 'larger-than-life' leadership, a promising tech stack, and the broader AI boom that has fueled investor excitement across the sector. As Morgan Housel famously put it, 'the best story wins,' and Palantir is a textbook case. Its secretive government contracts, ambitious AI platform (AIP), and aura of mystery give the stock an almost mythic appeal. But that same opacity is a double-edged sword. If AIP's value is overestimated or rivals catch up, the story could unravel quickly, especially as operating margins, currently around 44%, may already be peaking. Even a modest slip in profitability could shake investor confidence. Is now a good time to invest in Palantir stock? Foord believes the upside outweighs the risk, despite acknowledging the high-stakes nature of the bet. 'The big upside potential is taking center stage, but there's also a big downfall potential for Palantir if the AI darling falls out of favor,' he concludes, while maintaining his Buy rating on the stock. (To watch Foord's track record, click here) Meanwhile, Wall Street is taking a more cautious stance. With 10 Hold ratings, 3 Buys, and 3 Sells, analysts give PLTR a consensus Hold (i.e. Neutral) rating. Moreover, the average 12-month price target of $104.85 suggests a potential downside of ~32% from current levels. (See ) To find good ideas for stocks trading at attractive valuations, visit TipRanks' Best Stocks to Buy, a tool that unites all of TipRanks' equity insights.
Yahoo
3 days ago
- Business
- Yahoo
Palantir Just Hit a Record High. What's the Smart Move Now?
Key Points The tech company's revenue growth rate accelerated in Q1. Palantir's commercial business in the U.S. is seeing explosive growth. The stock's wild valuation leaves no room for error. 10 stocks we like better than Palantir Technologies › Data and artificial intelligence company Palantir (NASDAQ: PLTR) seemed to defy gravity in 2024. Shares more than quadrupled, rising a staggering 340%. With such an incredible rise, you'd be forgiven for guessing that the stock would cool off in 2025. But, so far, the opposite is true. Shares are heating up, rising by more than 105% year to date as of this writing. This has given the tech stock a gain of approximately 800% since the start of 2024. With shares trading at record highs. What should investors do? Does it make sense to buy more shares and hope the momentum continues? Or should investors take a more cautious approach and hold or even sell the stock? Soaring sales One thing Palantir really has going for it is its top-line growth. The tech company posted first-quarter revenue of $884 million, up 39% year over year. Highlighting the company's momentum, this was an acceleration from 36% year-over-year growth in the previous quarter. Fueling Palantir's first quarter of 2025 was 55% year-over-year growth in U.S. revenue. Accounting for $628 million of the quarter's total revenue, the U.S. market is vital for Palantir. Supporting this market was a 71% year-over-year increase in commercial revenue and a 45% jump in government revenue. Zooming out to all of the company's markets, Palantir said in its first-quarter update that it closed 139 deals worth $1 million or greater, 51 deals worth at least $5 million, and 31 deals worth $10 million or more. With these strong results now behind it, management had the confidence to raise full-year revenue guidance. The company said it now expects 2025 revenue to be between $3.890 billion and $3.902 billion. This compares to revenue of about $2.9 billion in 2024. The midpoint of management's 2025 revenue guidance range, therefore, assumes about 36% growth. This impressive top-line growth is bolstering profits. Palantir's first-quarter net income was approximately $214 million, more than double its profit of about $106 million in the year-ago quarter. Comments from Palantir co-founder and CEO Alexander Karp in the company's first-quarter earnings call suggest he believes the company is still in its early innings."We are in the middle of a tectonic shift in the adoption of our software, particularly in the U.S..." Karp noted. "We are delivering the operating system for the modern enterprise in the era of AI." A valuation problem While Palantir's top-line momentum is certainly impressive, there's one big problem for investors: The market seems to have already priced in more rapid growth for years to come. Today, Palantir's market capitalization sits at about $365 billion -- more than 93 times the high end of management's guidance range for full-year 2025 revenue. Using the company's trailing-12-month sales, Palantir currently has a price-to-sales ratio of 123. This would be a high figure even for a price-to-earnings ratio. And what is Palantir's price-to-earnings ratio? It's 672. Yes, you heard that right. It's safe to say that investors have already bid up the stock to a level that prices in the most optimistic assumptions for this company. So, what should investors do? The decision is a personal one -- one that you'll have to make on your own. However, if I owned the stock, I'd sell. And for those who don't own shares, I'd avoid them like the plague at this price. Of course, I could be wrong. It's always possible that Palantir exceeds even my most bullish assumptions. Still, I believe there are likely better places with less risk and greater upside potential for investors to allocate their capital. Palantir is a great company. But expectations are simply too high. Investors would be wise to wait to see if they can buy shares at a better entry price. Should you invest $1,000 in Palantir Technologies right now? 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 $652,133!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $1,056,790!* Now, it's worth noting Stock Advisor's total average return is 1,048% — a market-crushing outperformance compared to 180% for the S&P 500. Don't miss out on the latest top 10 list, available when you join Stock Advisor. See the 10 stocks » *Stock Advisor returns as of July 15, 2025 Daniel Sparks and his clients have 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. Palantir Just Hit a Record High. What's the Smart Move Now? was originally published by The Motley Fool
Yahoo
3 days ago
- Business
- Yahoo
This Under-the-Radar Stock Could Be the Next Palantir
Key Points The Real Brokerage is rapidly taking a share of real estate agents in the United States. It is trying to use AI and software to disrupt real estate transactions. Fast growth makes the stock an intriguing buy right now. 10 stocks we like better than Real Brokerage › Palantir Technologies (NASDAQ: PLTR) has put up astounding returns in the last few years. Since the beginning of 2023, shares are up more than 2,200%. That's over a decade's worth of life-changing returns in just two and a half years. Now, at a market cap of $350 billion and a price-to-sales ratio (P/S) greater than 100, it looks like future returns for Palantir stock will be weak. The math around valuation eventually catches up to a stock in the long run. Miss out on Palantir? Then you might be interested in this other fast-growing artificial intelligence (AI) and software platform: The Real Brokerage (NASDAQ: REAX). Here's why the stock has a chance to put up 10x returns like Palantir in the next few years. A lower-cost digital brokerage for real estate agents The residential real estate market has not yet been brought into the 21st century. People looking to buy and sell homes have to deal with high commission rates, while real estate agents deal with legacy in-office brokerages that operate slowly. There is a lot of friction and time wasted in real estate transactions that can be saved with digital tools. This is where The Real Brokerage steps in. As a cloud-based brokerage, it offers a digital brokerage and software tools to real estate agents who want to escape legacy brokerages. You see, every real estate agent is required to use a brokerage to process residential real estate transactions. However, historically, these brokerages would take a large cut of the commissions earned by real estate agents, a process still employed today even with modern internet real estate portals. With no offices and a software-first approach, The Real Brokerage has lower costs and therefore can take a smaller cut of transactions for real estate agents who work for the platform. Lower costs and robust software tools are driving agents to switch to The Real Brokerage. In the first quarter of 2025, the number of agents signed up with the brokerage grew 61% year over year to around 27,000. More agents mean more real estate transactions, which led to a 76% increase in revenue in the quarter to $354 million. Since going public, The Real Brokerage's revenue is up more than 10,000% cumulatively, making it one of the fastest-growing companies on the planet. Macroeconomic headwinds turning to tailwinds? The Real Brokerage is growing quickly despite the fact that existing home sales have frozen in the United States because of high interest rates. Annualized transactions have fallen to 4 million in recent quarters, compared to around 6 million in a normal environment. Fewer transactions in residential real estate mean weaker demand for The Real Brokerage. However, it is still taking a ton of market share and should benefit once this eventually unfreezes. Think of this as a slowly filling demand for potential home purchases. People want to buy homes or move, but cannot afford to because of mortgage rates and home prices. As this changes, investors could see huge growth in existing home sales, which will help the growth of The Real Brokerage. Why The Real Brokerage could become the next Palantir What makes The Real Brokerage like Palantir is not only its fast growth, but its embrace of AI. It has launched Leo AI, a digital AI concierge for real estate agents to help with busywork around homebuying and selling. As mentioned above, buying a home is an arduous process for both the buyer and the agent. This is a tailor-made situation for AI, and The Real Brokerage is building products for it. Over the long term, The Real Brokerage is working to build an AI-assisted real estate portal for clients, which would likely compete with Zillow Group. While it's a long way away from being widespread, The Real Brokerage has large ambitions and is executing at a blistering pace to try to become the AI and software layer of the residential real estate market. Today, you can buy shares of The Real Brokerage at a market cap of just $823 million. The company is not yet profitable and close to breakeven, but this is quite a small feat for a company that generates $128 million in gross profit and is growing revenue at more than 50% year over year. It does not come without risks, but The Real Brokerage looks like a potential huge stock winner for those who buy shares today. Do the experts think Real Brokerage is a buy right now? The Motley Fool's expert analyst team, drawing on years of investing experience and deep analysis of thousands of stocks, leverages our proprietary Moneyball AI investing database to uncover top opportunities. They've just revealed their to buy now — did Real Brokerage make the list? When our Stock Advisor analyst team has a stock recommendation, it can pay to listen. After all, Stock Advisor's total average return is up 1,069% vs. just 180% for the S&P — that is beating the market by 888.61%!* Imagine if you were a Stock Advisor member when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $687,149!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $1,060,406!* The 10 stocks that made the cut could produce monster returns in the coming years. Don't miss out on the latest top 10 list, available when you join Stock Advisor. See the 10 stocks » *Stock Advisor returns as of July 15, 2025 Brett Schafer has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Palantir Technologies and Zillow Group. The Motley Fool has a disclosure policy. This Under-the-Radar Stock Could Be the Next Palantir was originally published by The Motley Fool Error while retrieving data Sign in to access your portfolio Error while retrieving data Error while retrieving data Error while retrieving data Error while retrieving data
Yahoo
3 days ago
- Business
- Yahoo
Jim Cramer Says 'Palantir's Among the Fastest-Growing Tech Companies'
Palantir Technologies Inc. (NASDAQ:PLTR) is one of the stocks on Jim Cramer's radar. Cramer shared quite a bullish sentiment toward the company stock, as he remarked: 'Palantir's among the fastest-growing tech companies I can recall. It's got a projected annual growth rate of 18 to 25% out to 2030 with a market capitalization of $352 billion. May not sound that impressive, two years ago it was $35 billion. What does Palantir do? I say, what doesn't it do? You bring Palantir in to look at patterns to figure out how to run your business better. I've never heard anyone say that they aren't terrific at what they do, making your company money almost the minute you bring them in. They're also trying to make the Pentagon more efficient. But that's a tall order. I hope they succeed. So should you.' A software engineer manipulating a vast network of code on virtual monitors. Palantir (NASDAQ:PLTR) develops software platforms that integrate, analyze, and operationalize complex data for intelligence, commercial, and enterprise applications. The company's tools support decision-making, threat detection, and AI-powered operations across diverse environments. While we acknowledge the potential of PLTR as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock. READ NEXT: 30 Stocks That Should Double in 3 Years and 11 Hidden AI Stocks to Buy Right Now. Disclosure: None. This article is originally published at Insider Monkey. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
