Since the coverage of Palantir Technologies (NASDAQ:PLTR) in November for Q3 earnings, PLTR shares doubled in price, from $50.92 to present $103.33 per share. This new price level, surging from the low 80s, happened on Monday, just after the Q4 2024 earnings delivery.
Seemingly, the PLTR stock is now in overvalued territory at a forward price-to-earnings (P/E) ratio of 172.41, with an average price target of $69.50 according to TipRanks. But is there reason to believe Palantir is more likely to head to the highest price target of $125 and beyond?
First, let’s examine Palantir’s earnings progress.
Another Quarter for Palantir that Beats Expectations
Having beaten analyst expectations in Q3, Palantir did the same for Q4. This time the earnings per share (EPS) of $0.11 was surpassed by $0.14. Likewise, the company’s revenue of $828 million exceeded the LSEG forecast of $776 million.
Year-over-year, Palantir’s revenue generation increased by 36% in Q4, an improvement from 30% in Q3. Indicatively, the commercial division showed greater revenue acceleration, by 64% yoy to $214 million. However, Palantis government contracts still make the bulk of sales at $343 million, which is a 45% yoy uptick.
Overall, Palantir reported $2.87 billion in revenue for full year 2024, of which net income increased 16% from 2023 to $462.2 million. More importantly from a valuation aspect, Palantir forecasted better than expected sales for 2025, setting in the $3.74 – $3.76 billion range, above the average forecast of $3.52 billion.
In the quarter’s shareholder letter, Palantir CEO Alex Karp likened the company to a “software juggernaut”, noting that:
“We have the products and reach of an established incumbent and the speed, growth, and agility of an insurgent startup.”
But how exactly is Palantir’s enterprise software different from offerings of dozens of other publicly traded companies with drastically lower P/E ratios?
Palantir: Hegemony Technology
Just as Twitter Files showed coordinated collusion between the government and Big Tech to curtail the 1st amendment, the recent DOGE-powered USAID revelations showed that much of social structure is a top-down social engineering project. This not only extends to global politics but to culture and media as well.
For Tokenist readers who absorbed the coverage of DeepSeek, this is no surprise. It is embedded in any governance system to expand and maintain control. When AI emerged as viable, there was an immediate rush to tighten the bonds between the government and Big Tech in order to ensure “AI safety”, which is largely related to unified and automated narrative control.
With President Trump resuming his 2nd term, in alliance with Elon Musk, there is now more emphasis on a robust technology for governance systems. And Palantir is at the center of it. Together with Palantir CEO Alex Karp and Anduril co-founder Palmer Luckey (self-described “radical Zionist”), Elon Musk’s DOGE efforts appear to be the backbone of the new realignment of networked power.
Palantir is essential in this endeavor as an AI-powered platform that not only makes Big Data relevant, but makes it possible to organize data to deliver efficient decision making. In the August coverage of Palantir, when PLTR stock was only $26.95, we described this process pipeline as follows:
“Palantir’s clients receive greater understanding of how their own organizations work, instead of just relying on vague notions of how they work.”
At present, it seems that the Trump admin views much of the federal apparatus as a liability that serves its own ends. It is then easy to see how Palantir’s tech will be deployed to ascertain the relevance of current governance systems.
“On the government side, Palantir’s vision is very well aligned with the current administration,” D.A. Davidson analyst Gil Luria.
In turn, it is as easy to see how Palantir may become even more relevant than Microsoft (NASDAQ:MSFT). It is also notable that Palantir’s Chief Revenue Officer Ryan Taylor recently discouraged commercial clients from using Chinese AI models like DeepSeek, while noting that government contractors will likely be prohibited from using them.
In other words, investors should view Palantir as a likely monopolist in the emerging automated governance arena. This would not only make PLTR an AI stock, but one with an edge.
***
Neither the author, Tim Fries, nor this website, The Tokenist, provide financial advice. Please consult our website policy prior to making financial decisions.