Palantir Shares Rose 368% And Artificial Intelligence Could Propel Them Higher

Shares of Denver-based software provider Palantir rose nearly 27% on February 4 following 2024 fourth quarter results featuring faster-than-expected growth and an optimistic forecast for the current quarter and the year 2025.Having risen 368% in the last year and sporting a price-earnings ratio of 516, according to the Wall Street Journal, do shares of Palantir have more upside? If Wall Street analysts are right, the stock is about 26% too high. However, what matters most for the future of Palantir’s stock is whether the company can keep beating expectations and raising guidance.That could happen – especially if Palantir – which counts Peter Thiel among the company’s early investors – can harness artificial intelligence to make its defense and commercial customers better off.Palantir Fourth Quarter Performance And ProspectsPalantir stock rose to a record after reporting stronger-than-expected fourth-quarter results and guidance driven by AI, noted CNBC. The company’s commercial revenue increased 64% in the quarter while U.S. government sales rose 45%. Momentum at Palantir is unlike anything that has come before, CEO Alex Karp said.Here are the key numbers:Fourth-quarter 2024 revenue: $828 million – up 36% and $52 million above the analyst consensus, according to London Stock Exchange Group.Q1 2025 revenue estimate: $860 million – the range midpoint – which exceeds analysts’ estimate by $61 million, LSEG reported.2025 revenue estimate: $3.75 billion – the range midpoint – $230 million more than the LSEG estimate.We are at the way beginning of our trajectory, we are at the way beginning of a revolution, and we plan to be a cornerstone — if not the cornerstone company — and driving this revolution in the U.S. over the next three to five years, Karp said during the company’s earnings call.More on Palantir’s plans for future growth on ForbesPlease support our podcast sponsor Moving On IT | Tomorrow’s Technology, Today.Moving On IT Gears Up for Explosive Growth With Ingram Micro PartnershipPartnership marks a pivotal moment in Moving On IT's trajectory Get full access to Neural News Network at remunerationlabs.substack.com/subscribe