Palantir Eyes Record 50% Revenue Growth in Q3 Amid Valuation Concerns
Palantir Technologies, known for its work with the U.S. government, including the location of Osama bin Laden, is expecting a remarkable revenue growth of over 50% in the third quarter. This projected increase would set a new record for the company. Meanwhile, concerns about its valuation persist, with a high price-to-sales ratio and a recent drop in Palantir stock following a critical report.
Palantir's commercial business is thriving, with U.S. commercial revenue surging by 93% in the second quarter. The company's Artificial Intelligence Platform (AIP) is a key driver, enabling both government agencies and commercial companies to streamline operations and gain real-time insights. This quarter saw Palantir close 157 deals worth over $1 million, including 66 deals worth over $5 million and 42 deals worth over $10 million.
However, Palantir's valuation has been a topic of debate. Its price-to-sales ratio stands at 134, with a forward P/S ratio of 104. Citron Research's report, labeling Palantir's stock as 'detached from fundamentals and analysis', contributed to an 18% drop in shares earlier this summer. Despite these concerns, Palantir's market capitalization has soared to $430 billion, ranking it as the 21st-most valuable company globally. Institutional investors, such as Alpine Select, have shown confidence in Palantir, including it in their stock investments.
Palantir's strong commercial performance and innovative AI platform drive its growth, while valuation concerns and stock price fluctuations continue to be areas of focus. As the company looks ahead to another quarter of significant revenue growth, investors and analysts alike will be watching closely to see how these dynamics play out.
