The extraordinary growth of Palantir Technologies has become a subject of news and has attracted the attention of other retail and institutional investors. In the last one year, it has increased its stock more than 126 %, and since its IPO in October 2022, it has registered an astronomical increase of up to 1,750 %. The issue now arises whether this trend can continue and where the share will be in the future.
Close ties with US government and national security authorities are one of the greatest strengths of Palantir. The recent $10 billion US Army contract and the major agreements with other organizations like the ICE, the FBI, and even the Ministry of Defence in the UK underlines its deeply tied presence in both the data industry and defense in the state.
However, the scope of Palantir stretches far beyond the government. Its business division is currently growing exponentially, especially in products such as healthcare, finance, insurance, and telecommunications. The Artificial Intelligence Platform (AIP) adopted by the company in 2023 by releasing Artificial Intelligence enables clients to discover value in their own data and assists in this growth.
It is necessary to mention that Palantir can also sustain both modern industries and also long-established partners in the public sector as testified by the fact that now over $1 billion run rate of commercial business is processed in the US alone with the growth rate of 71% year to year growth.
However, risks remain. Palantir competes substantially with the technological giants and other agile upcoming players in the realm of big data and AI application. Some pundits warn that with the falling prices of AI and the rising scalability of platform technologies entry barriers are on the decline, and that will be a threat to the margins and long-term moat of Palantir.
Hence, the future of Palantir appears to be bound to its ability to record constant gains and experienced growth in the fast-changing markets and provide services to the scattered growing competition. Investors should be thrilled by many things such as high profits and new acquisitions, but their next year will be a true test to the so-called AI protecting stock probably because of volatility and prizing concerns.
