Overview

• 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.