Hello fellow investors,
We are now post the Q4 earnings call for Palantir, and I kindly want to like to revisit a quote from my 2025 Predictions post.
"When it was $8 a share, I told you to buy it since it was going to $100. Now that its $70, does that change that its going to go to $100?"
As I correctly forecasted, PLTR is now trading at $100 per share. A heartfelt congratulations to everyone who has been following my guidance. For those who have been with this site since 2021 and acted on my recommendations to invest in PLTR, you've likely seen returns in the (potentially hundreds of) thousands of dollars at the very least. Thank you for your engagement.
Lets take a brief look at the highlights from the earnings report.
Impressive Numbers
The Q4 results were nothing short of phenomenal. Palantir delivered its best quarter ever, with numbers that not only surpassed all estimates but also showcased massive growth. Truly exceptional performance! Some highlights:
US Commercial growth was 64% year over year, and US Government growth was 45%.
Customer's CIO proclaimed to have 200x efficiency gains since implementing PLTR's product, Warp Speed.
Some clients emphasized that processes which previously required several hours and multiple people to complete can now be accomplished in just a few minutes with a single individual, thanks to Palantir's software.
Efficiency impacts came from all types of customers, even hospitals.
All in all, we witnessed substantial growth, received glowing testimonials from satisfied clients, and heard incredible praise for Palantir's software. Personally, I believe the earnings call couldn't have gone any better. The stock price reflected this climbing up $106 in Tuesday's trading session.
So what's next?
Before we delve into the future of PLTR, I want to underscore a significant point: Palantir achieved these remarkable financial figures and growth without the existence of a marketing department. That's right—they haven't needed to actively market their products. Demand has grown organically as clients discover the transformative impacts the software has on enterprises. It's truly a dream scenario for any CEO.
Now, Wall Street has caught on and new price targets have now been updated across the industry, with guys like BOA giving them a buy rating with a $120 PT.
Personally, I'm not focused on price targets. Palantir's success stems from its superior product that stands without competition. Given this, I anticipate even greater demand, particularly under the current Trump administration, which will drive further growth.
On the earnings call, CTO Shyam Sankar even commented on collaboration with DOGE, stating:
“DOGE is going to bring meritocracy and transparency to government. That’s exactly what our commercial business is."
I expect Palantir to continue its growth trajectory through 2025. Are there risks involved? Absolutely. Valuations could face compression if unforeseen challenges arise, but such risks are inherent to investing in any company.
And as we are on the topic of valuations, I've repeatedly expressed my belief that Palantir is on its way to becoming a trillion-dollar company. So, what will it take to reach that milestone?
Currently, with the share price hovering around $100, Palantir's market cap stands at approximately $230 billion. To achieve a market cap of $1 trillion, the share price would need to climb to around $440. And that, my friends, is the direction we are heading towards.
If you're considering cashing in now, by all means, go ahead—no judgment here. Enjoy the returns you've made, especially if you need the funds. However, be aware that this business is poised for continued growth.
My favorite moment from this week's earning call was when Karp said the following:
“We are still in the earliest stage, the beginning of the first act, of a revolution that will play out over years and decades.” — Palantir CEO, Alex Karp
1 Trillion market cap by 2030. That's my prediction.
