Where Will Palantir Technologies Stock Be in 5 Years?
Palantir Technologies (NYSE: PLTR) saw a sharp 52% jump in its stock price so far in 2024. A big reason for that surge is the growing demand for the company's Artificial Intelligence Platform, which is now driving healthy growth in its commercial business. At the same time, Palantir made its name as a supplier of software platforms to government agencies in the U.S. and other countries, but growth on that side of the business has slowed over the past year.
Palantir's government-related revenue increased 14% in 2023 to $1.2 billion. Its commercial business recorded 20% growth last year. Taken together, overall revenue rose by 17% in 2023 to $2.23 billion. But is this growth enough to help Palantir justify its current expensive valuation? Can it keep delivering healthy growth for the next five years?
The good news for Palantir is that the growing adoption of artificial intelligence (AI) by government agencies could give that side of its business a shot in the arm. Palantir stock surged impressively this month after it revealed that the U.S. Army had awarded it a $178.4 million contract to develop prototypes of Tactical Intelligence Targeting Access Node (TITAN) -- AI-powered ground stations that "provide actionable targeting information for enhanced mission command and long range precision fires."
Source Fool.com
