Palantir Technologies Soars To New 52-Week Highs: What's Going On

ZINGER KEY POINTS

• Palantir Technologies shares are volatile Wednesday, hitting new 52-week high.

• Palantir's stock surge is fueled by its expanding role in AI, with strong government and commercial contracts driving investor optimism.

Palantir Technologies Inc. shares were volatile Wednesday, hitting new 52-week highs and approaching an all-time peak. Here’swhat you need to know.

What To know: Last week, Palantir shares closed at $40.01, a significant milestone as they neared their previous all-time intraday high of $45 set in January 2021. This recent surge in stock price marks a 133% year-to-date gain in 2024.

Palantir’s “Artificial Intelligence Platform” (AIP), launched in 2023, is making strides across various industries, from defense to healthcare. Its AIPCon events, most recently in September, showcased real-world use cases, including operational efficiency improvements in sectors like healthcare, defense and supply chain management.

With increasing demand for data-driven decision-making tools and AI-enhanced platforms, Palantir is capitalizing on its AI expertise and the foundational investments it has made over the last decade. With its inclusion in the S&P 500 on Sept. 23, the company now also has more institutional and mutual fund investment, according to Investors.com.

Palantir has also seen strong growth in both government and commercial sectors, with contracts such as the U.S. Army’s Project Maven extension and a new $178 million contract for Project TITAN, both of which heavily rely on AI-driven battlefield intelligence systems. The Maven contract alone is estimated to bring in $90 million annually. Additionally, Palantir's partnership with the Department of Defense’s Chief Digital and Artificial Intelligence Office (CDAO) for a $480 million contract further solidifies its leadership in defense-related AI applications.

What Else: The stock boasts a price-to-earnings (P/E) ratio of 243.82 based on trailing 12-month earnings and its forward P/E stands at 99.01.

The company’s revenue for 2023 reached $2.23 billion, representing a 17% year-over-year increase. However, this growth has decelerated from previous years, with revenue growth rates of 24% in 2022 and 40% in 2021. Despite this slowdown, Palantir’s gross margin remains strong at 81%.

PLTR Price Action: Palantir shares closed Wednesday up 4.05% at $43.13.