Investors Bet on Palantir: The AI Revolution Provides a Boost

Palantir Technologies seems to be striking a chord with the current times. The increased investor enthusiasm for artificial intelligence (AI), combined with global tensions, could drive demand for the company's military targeting and analysis technology. Noteworthy is the impressive 161% growth of the Palantir stock in 2024. This raises the question of how long the stock rally can continue. Big Data is currently experiencing an upswing, particularly in the area of generative AI algorithms like ChatGPT. The significance of these technologies has been recognized for a long time. Founded in 2003, Palantir specializes in the analysis of large data sets and offers platforms that provide actionable insights. Since the attacks of September 11th, the company has made a name for itself by assisting US intelligence agencies and the Department of Defense in critical missions. This not only gave Palantir operational experience but also a significant economic advantage through the earned trust of government clients. Palantir's business model is based on SaaS platforms, which exhibit strong customer loyalty due to high switching costs and training efforts. Key offerings include Gotham for government clients and Foundry for commercial customers. Newly added is the Artificial Intelligence Platform (AIP), which combines existing data analysis software with large-scale language models to provide real-time insights. AIP has clear applications in the military sector and is already in use in Israel and Ukraine. Additionally, AIP strengthens Palantir's commercial sector, where the company scores with its security reputation. This is reflected in the second quarter's financial results: revenue increased year-on-year by 27% to 678 million USD, with US commercial revenue up 55% to 159 million USD. Palantir is solidly profitable, with adjusted EBITDA rising 39% to 261.6 million USD.