- Why Us
Your capital is at risk if you invest. You could lose all your investment. Please see the full risk warning here.
Palantir Technologies (PLTR, Financial) has soared over 300% in 2024 due to its growing involvement in artificial intelligence and defense innovation.
The government contracts power contributor makes up nearly 60% of the company’s revenue and puts it in a central role in the U.S. military modernization drive.
Palantir stock has more than tripled in 2024, and it is the best performing stock in the S&P 500 so far this year, eclipsing even Nvidia run of 175% year-to-date.
Source: TradingView
Meanwhile, PLTR stock has not only out-performed other software companies, but everyone in the S&P 500.
Nearly 2/3 of the gain came after its latest Q3’2024 top and bottom line beat and the subsequent Donald Trump’s Presidential election win.
Palantir’s incredible rally in the last month could attributed to views that that artificial intelligence will play a bigger role in US security and defense spending.
Palantir’s Strategic moves
Palantir on Dec. 9 announced an expansion of its contract with the U.S. Special Operations Command that establishes Palantir as the lead software integrator for its Mission Command System.
Palantir said the one-year contract is valued at $36.8 million.
In addition, Palantir has won a new, $178 million U.S. Army contract for project TITAN, a battlefield system using artificial intelligence.
Meanwhile, Palantir joined the S&P 500 index on Sept. 23. The inclusion enables mutual funds and institutional investors to buy PLTR stock.
Palantir last months announced that it will transfer the listing of its common stock from the New York Stock Exchange to the Nasdaq.
The company began trading as a Nasdaq-listed company on Nov. 26.
Analysts with bearish views on Palantir stock continue to question its valuation.
Nonetheless, Palantir is among AI stocks to watch.
Palantir CEO Alex Karp stressed how important AI is in changing industries and economies. “We are in the software century, and we plan to take the whole market,” Karp said in a Nov. 4 letter to shareholders.
The company, headquartered in Denver, provides three distinct platforms. Palantir Gotham is designed mainly for use by government organizations, while Palantir Metropolis caters to the needs of banks, financial institutions, and hedge funds.
Palantir generates approximately 60% of its revenue from government clients.
Source: FinChat
Decelerating revenue growth trend is a serious problem.
In 2020, revenue soared by 47%, showcasing remarkable growth. This momentum continued but at a slower pace into 2021 with a 40% increase. By 2022, growth further decelerated to 24%. In 2023, revenue rose by a modest 17% year-over-year, reaching $2.23 billion.
On top of that, Palantir is not cheap by any stretch of the imagination.
Its Forward Price-to-Earnings ratio is 135, by far the most expensive vs its peer on that metric.
Source: FinChat
Lastly, Palantir has not disclosed pricing for AI products. Some analysts say Palantir needs to show more revenue progress with generative AI commercial deployments.
Investors can long Palantir using our 3x Palantir.
Alternatively, investors can short Palantir using our -1x Palantir.
Your capital is at risk if you invest. You could lose all your investment. Please see the full risk warning here.
Share this:
This is a marketing communication. Please refer to the prospectus of the ETPs and to the KIID before making any final investment decisions.
This information originates from Leverage Shares UK Limited, which has been appointed as distributor of Leverage Shares products in the United Kingdom by Leverage Shares Management Company Limited (the “Arranger”), incorporated under Irish law.
The information is intended only to provide general and preliminary information to investors and shall not be construed as investment, legal or tax advice. Leverage Shares UK Limited and the Arranger (together referred as “Leverage Shares”) assume no liability with regards to any investment, divestment or retention decision taken by the investor on the basis of this information. The views and opinions expressed are those of the author(s) but not necessarily those of Leverage Shares. Opinions are current as of the publication date and are subject to change with market conditions. Certain statements contained herein may constitute projections, forecasts and other forward-looking statements, which do not reflect actual results. Information provided by third party sources is believed to be reliable and have not been independently verified for accuracy or completeness and cannot be guaranteed. Brokerage or transaction fees may apply.
All performance information is based on historical data and does not predict future returns. Investing is subject to risk, including the possible loss of principal.
No part of this material may be reproduced in any form, or referred to in any other publication, without express written permission of Leverage Shares.
Never miss out on important announcements. Get premium content ahead of the crowd. Enjoy exclusive insights via the newsletter only.
INVESTOR TYPE:
LOCATION:
European Union (EN)
Please confirm the Terms and Conditions by clicking on “I agree”.
This website is for informational purposes only.
This website is accessible to retail investors in the EU for informational purposes only. Leverage Shares does not directly distribute to retail investors. Retail clients should not rely on any of the information provided and should seek independent financial advice.
Information contained in this website is intended only to provide general and preliminary information and does not constitute any legal or investment advice, an offer to sell or solicitation to buy any security, including shares of any Exchange Traded Products (“ETPs”).
An investment in the promoted ETPs may only be made based on the ETPs´ legal documentation and will be subject to terms and conditions contained therein.
The information provided on this site is not directed to any United States person or any person in the United States, any state thereof, or any of its territories or possessions. The ETPs shown on this website are not available for sale in the U.S. or to a U.S. person.
I acknowledge having my legal residence in the selected location.
Please confirm the Terms and Conditions by clicking on “I agree”.
This website is for informational purposes only.
Information contained in this website is intended only to provide general and preliminary information to EU regulated firms such as Investment Intermediaries and Asset Managers. This information does not constitute an offer to sell or solicitation to buy any security, including shares of any Exchange Traded Products (“ETPs”).
An investment in the promoted ETPs may only be made based on the ETPs´ legal documentation and will be subject to terms and conditions contained therein.
The information provided on this site is not directed to any United States person or any person in the United States, any state thereof, or any of its territories or possessions. The ETPs shown on this website are not available for sale in the U.S. or to a U.S. person.
I acknowledge having my legal residence in the selected location.
Please confirm the Terms and Conditions by clicking on “I agree”.
This website is for informational purposes only.
This website is accessible to retail investors in the UK for informational purposes only. Leverage Shares does not directly distribute to retail investors. Retail clients should not rely on any of the information provided and should seek assistance from an IFA for all investment guidance and advice.
Information contained in this website is intended only to provide general and preliminary information and does not constitute any legal or investment advice, an offer to sell or solicitation to buy any security, including shares of any Exchange Traded Products (“ETPs”).
An investment in the promoted ETPs may only be made based on the ETPs´ legal documentation and will be subject to terms and conditions contained therein.
The information provided on this site is not directed to any United States person or any person in the United States, any state thereof, or any of its territories or possessions. The ETPs shown on this website are not available for sale in the U.S. or to a U.S. person.
I acknowledge having my legal residence in the selected location.
Please confirm the Terms and Conditions by clicking on “I agree”.
This website is for informational purposes only.
Information contained in this website is intended only to provide general and preliminary information to FCA regulated firms such as Independent Financial Advisors (IFAs) and Wealth Managers. This information does not constitute an offer to sell or solicitation to buy any security, including shares of any Exchange Traded Products (“ETPs”).
An investment in the promoted ETPs may only be made based on the ETPs´ legal documentation and will be subject to terms and conditions contained therein.
The information provided on this site is not directed to any United States person or any person in the United States, any state thereof, or any of its territories or possessions. The ETPs shown on this website are not available for sale in the U.S. or to a U.S. person.
I acknowledge having my legal residence in the selected location.
This website is intended for U.S. residents.
The content on this website is for informational purposes only and is educational in nature.
The material contained on this website is not intended as a recommendation to buy, sell or hold any security or to adopt any investment strategy.
This website is intended for U.S. residents.
The content on this website is for informational purposes only and is educational in nature.
The material contained on this website is not intended as a recommendation to buy, sell or hold any security or to adopt any investment strategy.
