Palantir Technologies (NYSE: PLTR) has been on a staggering run-up, with shares rising over 80% in the past year. The company’s custom data analytics software has proven valuable in real-world situations, leading to robust business performance that has caught the attention of Wall Street.
Palantir specializes in developing custom software on its three platforms: Gotham, Foundry, and its Artificial Intelligence Platform (AIP). While the inner workings of its products may be somewhat mysterious, the results it delivers for customers speak volumes about the quality of its offerings.
One example of Palantir’s success is its contract expansion with Tampa General Hospital, where the implementation of its AIP software led to significant improvements in efficiency and patient care. This kind of real-world impact has garnered the company contracts with the U.S. government, including a recent $480 million deal with the U.S. Army.
With a growing customer base in both the government and corporate sectors, Palantir has immense long-term upside in the private sector. Despite its success, the company still has plenty of untapped market opportunities, with thousands of potential clients in the $1 billion to $10 billion revenue range.
While Palantir stock has seen impressive growth, investors may want to consider the company’s valuation before buying in. With a forward P/E ratio of 83 and a PEG ratio of nearly 3.5, the stock appears to be on the expensive side. Waiting for a pullback may be a wise move for investors looking to buy shares.
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In conclusion, while Palantir Technologies has shown strong performance and potential for growth, investors should carefully evaluate the stock’s valuation and consider alternative investment options before making a decision. Extreme Investor Network provides valuable insights and analysis to help investors make informed choices in their investment journey.