• Education
    • Higher Education
    • Scholarships & Grants
    • Online Learning
    • School Reforms
    • Research & Innovation
  • Lifestyle
    • Travel
    • Food & Drink
    • Fashion & Beauty
    • Home & Living
    • Relationships & Family
  • Technology & Startups
    • Software & Apps
    • Startup Success Stories
    • Startups & Innovations
    • Tech Regulations
    • Venture Capital
    • Artificial Intelligence
    • Cybersecurity
    • Emerging Technologies
    • Gadgets & Devices
    • Industry Analysis
  • About us
  • Contact
  • Advertise with Us
  • Privacy & Policy
Today Headline
  • Home
  • World News
    • Us & Canada
    • Europe
    • Asia
    • Africa
    • Middle East
  • Politics
    • Elections
    • Political Parties
    • Government Policies
    • International Relations
    • Legislative News
  • Business & Finance
    • Market Trends
    • Stock Market
    • Entrepreneurship
    • Corporate News
    • Economic Policies
  • Science & Environment
    • Space Exploration
    • Climate Change
    • Wildlife & Conservation
    • Environmental Policies
    • Medical Research
  • Health
    • Public Health
    • Mental Health
    • Medical Breakthroughs
    • Fitness & Nutrition
    • Pandemic Updates
  • Sports
    • Football
    • Basketball
    • Tennis
    • Olympics
    • Motorsport
  • Entertainment
    • Movies
    • Music
    • TV & Streaming
    • Celebrity News
    • Awards & Festivals
  • Crime & Justice
    • Court Cases
    • Cybercrime
    • Policing
    • Criminal Investigations
    • Legal Reforms
No Result
View All Result
  • Home
  • World News
    • Us & Canada
    • Europe
    • Asia
    • Africa
    • Middle East
  • Politics
    • Elections
    • Political Parties
    • Government Policies
    • International Relations
    • Legislative News
  • Business & Finance
    • Market Trends
    • Stock Market
    • Entrepreneurship
    • Corporate News
    • Economic Policies
  • Science & Environment
    • Space Exploration
    • Climate Change
    • Wildlife & Conservation
    • Environmental Policies
    • Medical Research
  • Health
    • Public Health
    • Mental Health
    • Medical Breakthroughs
    • Fitness & Nutrition
    • Pandemic Updates
  • Sports
    • Football
    • Basketball
    • Tennis
    • Olympics
    • Motorsport
  • Entertainment
    • Movies
    • Music
    • TV & Streaming
    • Celebrity News
    • Awards & Festivals
  • Crime & Justice
    • Court Cases
    • Cybercrime
    • Policing
    • Criminal Investigations
    • Legal Reforms
No Result
View All Result
Today Headline
No Result
View All Result
Home Business & Finance

Can Palantir Become a Trillion-Dollar Company? todayheadline

February 6, 2025
in Business & Finance
Reading Time: 4 mins read
A A
0
PLTR Operating Revenue (Quarterly YoY Growth) Chart
3
SHARES
6
VIEWS
Share on FacebookShare on Twitter


Shares of big data platform Palantir (PLTR -2.38%) stunned investors on Monday, blowing away analyst revenue and profit targets on its fourth-quarter earnings report.

In response, Palantir’s stock rallied another 24% on Tuesday, surpassing $100 per share and reaching a market cap around $236.5 billion. The stock is now up over 500% over the past year, cementing its standing as one of the biggest winners of the AI revolution.

The stock also looks wildly expensive at this moment. Still, Palantir’s stock has always looked expensive, yet that hasn’t stopped it from defying skeptics again and again.

Could the stock quadruple again to reach a $1 trillion valuation, putting it in league with the Magnificent Seven? Here’s the case to be made.

Palantir’s valuation looks insane

Palantir no doubt delivered some impressive results in the fourth quarter and throughout 2024. In Q4, overall revenue grew 36%, with U.S. revenue up 52%, including U.S. commercial growth of 64% and U.S. government growth of 45%.

The company also closed a record-high new quarterly contract value, at $803 million. While GAAP operating income came in at just $11 million or 1%, that was heavily affected by “one-time” stock appreciation rights, or SAR, for employees. On an adjusted non-GAAP basis, operating earnings were $373 million, good for a 45% operating margin. For the full year, Palantir grew 29%, with an adjusted operating income margin of 39%.

Those results marked a big acceleration. Last year’s fourth quarter saw only 20% growth, with full-year 2023 revenue growth of 17% and a 28% adjusted operating margin.

While accelerating revenue and profitability is awesome, investors may get nosebleeds when looking at Palantir’s valuation. Shares currently go for 505 times 2024 GAAP earnings. And even when using “adjusted” net income of $1 billion, which adds back stock-based comp that is a real expense to shareholders, shares still go for about 236 times earnings.

When one looks ahead to 2025 guidance, Palantir still trades at 63 times 2025 sales guidance, even after 31% projected revenue growth, and 148 times adjusted free cash flow. Notably, management didn’t guide for a GAAP net income figure, which would have been much lower than free cash flow due to high stock-based comp.

There is still a bull case to be made, though

While Palantir’s valuation is currently at nosebleed levels, there is a case to be made for the stock, believe it or not. That case rests on Palantir’s becoming a near-monopolistic platform for the enterprise in the age of artificial intelligence. Wedbush sell-side analyst Dan Ives is a bull, claiming Palantir’s dominance of this new area could be akin to Oracle‘s dominance in enterprise databases or Salesforce‘s dominance of customer relationship management platforms.

While Palantir isn’t a builder of large language models, its software platform, which has been many years in the making, allows large language models (LLMs) to be harnessed in a useful and secure way for enterprises today.

That appears to be a rare capability. Palantir unveiled its AIP platform in the second quarter of 2023, which brings LLMs into Palantir’s core platforms. Since the introduction of AIP, growth has reaccelerated:

PLTR Operating Revenue (Quarterly YoY Growth) data by YCharts

Why Palantir’s platform gets such a lift from AI

Palantir’s platform isn’t traditional enterprise software. Rather, it composes what management calls an enterprise “ontology.” As Palantir defines it, an ontology is essentially a “digital twin” of an enterprise’s architecture, which all elements within an organization are reduced to a digital object with known properties, specified links between them, and which undergo certain defined actions.

Thus, if one wants to “automate” one’s enterprise through the use of AI, that AI will have to interface digitally with every database, factory, HR profile, and other objects in the enterprise’s universe. And it also has to do so in a secure and compliant way.

Palantir executive Shyam Sankar said on the conference call with analysts said if you only wanted to automate a single business, you wouldn’t need an ontology platform. Moreover, if one were to build traditional software for all kinds of businesses, it wouldn’t work in this AI context, as businesses aren’t one-size-fits-all.

However, Palantir’s ontology framework, some 20 years in the making, enables a sort of mass-customization across players in various industries that makes enterprises easier to “automate” with AI. And because Palantir began with the Department of Defense for anti-terror activities, businesses also trust Palantir to manage a company’s data in a highly secure way. Sankar elaborated:

If you have the ambition to build software that works across government, across 50 different industries, you have to build Ontology. It is absolutely the longest path between Point A and Point B. But it gives you superpowers when you show up to your customers.

Dominant enterprise platforms tend to do well

It still remains to be seen if Palantir will become a monopolistic de facto platform for enterprise AI, but its accelerating revenue growth, even with a minimal sales force, certainly paints an optimistic picture. Whether one is talking about, say, an Oracle database, a Salesforce CRM platform, or a Microsoft Office suite, once a software platform achieves dominant status, it tends to get beneficial network effects.

This happens because once a platform gets a big lead and becomes standardized, everyone tends to learn how to operate that platform, ingraining it even further. You don’t want to have to learn three, four, or five different enterprise software platforms in school or at any one business, after all.

That’s why enterprise software platforms tend to be wide-moat, cash-generative businesses, and it’s the reason Palantir may eventually reach $1 trillion over time — even though it looks very far away from achieving that milestone today.

Tags: companyPalantirtodayheadlinetrilliondollar
Previous Post

Suzuki delivers robust Q3 performance and upbeat full-year outlook todayheadline

Next Post

‘Stay humble’: Gordon’s message after Arsenal win

Related Posts

OPEC+ considers raising oil output by 550,000 bpd in August, sources say

OPEC+ considers raising oil output by 550,000 bpd in August, sources say todayheadline

July 5, 2025
6
ET logo

Texas summer camp missing girls: Camp mystic where over 20 girls went missing during devastating flooding in Texas nearly a century old todayheadline

July 5, 2025
4
Next Post
Copy Link

'Stay humble': Gordon's message after Arsenal win

  • Trending
  • Comments
  • Latest
Family calls for change after B.C. nurse dies by suicide after attacks on the job

Family calls for change after B.C. nurse dies by suicide after attacks on the job

April 2, 2025
Pioneering 3D printing project shares successes

Product reduces TPH levels to non-hazardous status

November 27, 2024

Hospital Mergers Fail to Deliver Better Care or Lower Costs, Study Finds todayheadline

December 31, 2024

Police ID man who died after Corso Italia fight

December 23, 2024
Harris tells supporters 'never give up' and urges peaceful transfer of power

Harris tells supporters ‘never give up’ and urges peaceful transfer of power

0
Des Moines Man Accused Of Shooting Ex-Girlfriend's Mother

Des Moines Man Accused Of Shooting Ex-Girlfriend’s Mother

0

Trump ‘looks forward’ to White House meeting with Biden

0
Catholic voters were critical to Donald Trump’s blowout victory: ‘Harris snubbed us’

Catholic voters were critical to Donald Trump’s blowout victory: ‘Harris snubbed us’

0
Privileged thrill-seeking teen travels the world broke to find adventure -- and altruism

Privileged thrill-seeking teen travels the world broke to find adventure — and altruism

July 5, 2025
OPEC+ considers raising oil output by 550,000 bpd in August, sources say

OPEC+ considers raising oil output by 550,000 bpd in August, sources say todayheadline

July 5, 2025
ET logo

Texas summer camp missing girls: Camp mystic where over 20 girls went missing during devastating flooding in Texas nearly a century old todayheadline

July 5, 2025
Study finds smartphone bans in Dutch schools improved focus

Study finds smartphone bans in Dutch schools improved focus

July 5, 2025

Recent News

Privileged thrill-seeking teen travels the world broke to find adventure -- and altruism

Privileged thrill-seeking teen travels the world broke to find adventure — and altruism

July 5, 2025
4
OPEC+ considers raising oil output by 550,000 bpd in August, sources say

OPEC+ considers raising oil output by 550,000 bpd in August, sources say todayheadline

July 5, 2025
6
ET logo

Texas summer camp missing girls: Camp mystic where over 20 girls went missing during devastating flooding in Texas nearly a century old todayheadline

July 5, 2025
4
Study finds smartphone bans in Dutch schools improved focus

Study finds smartphone bans in Dutch schools improved focus

July 5, 2025
4

TodayHeadline is a dynamic news website dedicated to delivering up-to-date and comprehensive news coverage from around the globe.

Follow Us

Browse by Category

  • Africa
  • Asia
  • Basketball
  • Business & Finance
  • Climate Change
  • Crime & Justice
  • Cybersecurity
  • Economic Policies
  • Elections
  • Entertainment
  • Entrepreneurship
  • Environmental Policies
  • Europe
  • Football
  • Gadgets & Devices
  • Health
  • Medical Research
  • Mental Health
  • Middle East
  • Motorsport
  • Olympics
  • Politics
  • Public Health
  • Relationships & Family
  • Science & Environment
  • Software & Apps
  • Space Exploration
  • Sports
  • Stock Market
  • Technology & Startups
  • Tennis
  • Travel
  • Uncategorized
  • Us & Canada
  • Wildlife & Conservation
  • World News

Recent News

Privileged thrill-seeking teen travels the world broke to find adventure -- and altruism

Privileged thrill-seeking teen travels the world broke to find adventure — and altruism

July 5, 2025
OPEC+ considers raising oil output by 550,000 bpd in August, sources say

OPEC+ considers raising oil output by 550,000 bpd in August, sources say todayheadline

July 5, 2025
  • Education
  • Lifestyle
  • Technology & Startups
  • About us
  • Contact
  • Advertise with Us
  • Privacy & Policy

© 2024 Todayheadline.co

Welcome Back!

OR

Login to your account below

Forgotten Password?

Retrieve your password

Please enter your username or email address to reset your password.

Log In
No Result
View All Result
  • Business & Finance
  • Corporate News
  • Economic Policies
  • Entrepreneurship
  • Market Trends
  • Crime & Justice
  • Court Cases
  • Criminal Investigations
  • Cybercrime
  • Legal Reforms
  • Policing
  • Education
  • Higher Education
  • Online Learning
  • Entertainment
  • Awards & Festivals
  • Celebrity News
  • Movies
  • Music
  • Health
  • Fitness & Nutrition
  • Medical Breakthroughs
  • Mental Health
  • Pandemic Updates
  • Lifestyle
  • Fashion & Beauty
  • Food & Drink
  • Home & Living
  • Politics
  • Elections
  • Government Policies
  • International Relations
  • Legislative News
  • Political Parties
  • Africa
  • Asia
  • Europe
  • Middle East
  • Artificial Intelligence
  • Cybersecurity
  • Emerging Technologies
  • Gadgets & Devices
  • Industry Analysis
  • Basketball
  • Football
  • Motorsport
  • Olympics
  • Climate Change
  • Environmental Policies
  • Medical Research
  • Science & Environment
  • Space Exploration
  • Wildlife & Conservation
  • Sports
  • Tennis
  • Technology & Startups
  • Software & Apps
  • Startup Success Stories
  • Startups & Innovations
  • Tech Regulations
  • Venture Capital
  • Uncategorized
  • World News
  • Us & Canada
  • Public Health
  • Relationships & Family
  • Travel
  • Research & Innovation
  • Scholarships & Grants
  • School Reforms
  • Stock Market
  • TV & Streaming
  • Advertise with Us
  • Privacy & Policy
  • About us
  • Contact

© 2024 Todayheadline.co