Palantir: As Tempting As It Is To Sell, Keep Riding This Rally

Gary Alexander
30.76K Followers
(10min)

Summary

  • Palantir stock has surged over 60% year to date, driven by AI enthusiasm and US government business growth.
  • Though the stock is trading at over 20x current year revenue, I recommend continuing to hold for further upside.
  • The company is re-accelerating its government business, which continues to deliver more than half of Palantir's revenue.
  • The company also notes that "bootcamp" style trials for Palantir products have helped to compress sales cycles, whereas many software peers are reporting deal cycle elongation.
Palantir Technologies headquarters campus exterior view in Silicon Valley. - Palo Alto, California, USA - 2019

Michael Vi

Without a doubt, the single best-performing stock in my portfolio over the past quarter has been Palantir (NASDAQ:PLTR). Fueled by rabid AI enthusiasm and a re-acceleration in its all-important US government business, Palantir has been on a tear since reporting

This article was written by

30.76K Followers
With combined experience of covering technology companies on Wall Street and working in Silicon Valley, and serving as an outside adviser to several seed-round startups, Gary Alexander has exposure to many of the themes shaping the industry today. He has been a regular contributor on Seeking Alpha since 2017. He has been quoted in many web publications and his articles are syndicated to company pages in popular trading apps like Robinhood.

Analyst’s Disclosure: I/we have a beneficial long position in the shares of PLTR either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

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