Palantir Stock: A Bullish Case for the Future
Let's talk about Palantir (NASDAQ: PLTR), a stock that has been making waves lately. While Wall Street's sentiment remains mixed, there's a growing bull case for why this company might be on the verge of something big.
First, let’s look at the numbers. Palantir's U.S. commercial customer base grew by a staggering 72.9% in fiscal year 2024. This massive increase helped drive a 28.8% revenue boost, bringing the company's total revenue to an impressive $2.87 billion. Even better, its adjusted EBITDA margins improved to 40.5%, a strong indication of the company’s ability to scale profitably. Looking ahead, CEO Alex Karp has projected an even more aggressive growth target for 2025. He’s expecting revenue to jump 30.8% to $3.75 billion, and for the first time, Palantir is anticipating positive GAAP earnings per share. This is a big deal because it suggests the company is overcoming past concerns about stock-based compensation (SBC) diluting its earnings.
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But here's the key challenge: Palantir's future success heavily depends on accelerating its Revenue Deployment Velocity (RDV). Essentially, this means that while the company has no shortage of potential deals, it needs to rapidly convert them into actual revenue streams. That’s easier said than done, but if they can execute well, the upside is significant.
On another front, Palantir continues to strengthen its relationships with government agencies. Recently, the company collaborated with U.S. Special Operations Command to demonstrate a hostage rescue operation in Tampa. This highlights Palantir's ongoing involvement in high-stakes defense and intelligence applications, a niche where they have a strong competitive edge.
Despite its stock having fluctuated since its all-time high, hovering around the $80 mark, bullish analysts believe Palantir's long-term potential is solid. While some investors remain cautious, given its past volatility, there’s a case to be made for those looking at its expanding commercial footprint and improving financials.
In the end, the debate around Palantir boils down to execution. If they can continue scaling commercial growth while maintaining profitability, the bull case may very well play out. Investors will be watching closely as 2025 unfolds.
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