Palantir Stock Surges 280% in 2024 Amid AI Demand and U.S. Government Ties
The company's growth is driven by AI adoption, government contracts, and optimism over defense spending under Trump, but concerns about valuation and insider selling loom.
- Palantir's stock has soared 280% this year, reaching $63 per share, with a market capitalization of $140 billion, surpassing defense giant Lockheed Martin.
- Key drivers include increased demand for AI solutions, major U.S. government contracts, and expectations of higher defense spending under the Trump administration.
- The company reported strong Q3 results with $726 million in revenue (up 30% year-over-year) and adjusted operating margins of 38%, though commercial sales missed expectations.
- Concerns over Palantir's valuation persist, as it trades at 131x projected 2025 earnings, with insider selling by CEO Alex Karp totaling $1.9 billion in recent months.
- While Palantir's government business thrives, challenges in scaling its commercial platform and competition from tech giants like Microsoft raise questions about its long-term growth potential.
Forbes 