Palantir Technologies Inc. (PLTR) saw its stock soar to an all-time high Tuesday, following a strong fourth-quarter earnings report and increased investor confidence in its artificial intelligence (AI) capabilities.
Shares surged to $105.67, reflecting a 21.9% increase, with intraday highs reaching $106.88.
Palantir reports Q4 2024 revenue growth of 36% Y/Y, U.S. revenue growth of 52% Y/Y; Issues FY 2025 revenue guidance of 31% Y/Y growth, eviscerating consensus estimates.
U.S. commercial revenue grew 64% y/y and 20% q/q and U.S. government revenue grew 45% y/y and 7% q/q.
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— Palantir (@PalantirTech) February 3, 2025
The company reported a 36% revenue growth for the quarter, exceeding analyst expectations. Palantir also provided an optimistic forecast for 2025, projecting a 31% revenue increase as demand for its AI-driven solutions continues to rise. Its AI Platform (AIP), which helps businesses integrate generative AI into their operations, has been a key driver of this success.
Analysts have responded by adjusting their outlook on the stock. Morgan Stanley upgraded Palantir from “underweight” to “equal weight” and raised its price target to $95. D.A. Davidson’s Gil Luria boosted his target to $105, declaring, “The winning continues.”
Despite the bullish sentiment, some analysts remain cautious, pointing to concerns about the stock’s valuation. Of 22 analysts covering Palantir, 19 maintain a “hold” or “sell” rating, warning that the company’s rapid rise may not be sustainable in the long term.
Still, Palantir’s continued expansion into AI-powered solutions has positioned it as a leader in the industry. As demand for AI accelerates, investors are betting that the company’s technology will continue driving growth in the years ahead.