Investing in Palantir: A Deep Dive into the Potential for Growth and Returns

What Palantir does

Palantir, named after the 'seeing-stones' in Tolkien's Lord of the Rings novels, is an Artificial Intelligence (AI) and data analysis company. Through its platforms such as Palantir Gotham and Foundry, the company assists public, private, and non-profit organizations through big data analysis, which helps leaders gain insight into hidden patterns within data. As a result, Palantir's customers can often develop better, more efficient processes that improve outcomes and lower costs.

Who is -- and isn't -- already using Palantir's products

In its most recent quarter ending on Dec. 31, 2023, Palantir reported total revenue of $608 million. However, only $131 million, or roughly 22%, was from U.S. Commercial customers. That leaves Palantir plenty of room to grow as its U.S. commercial revenue is growing at 70% year-over-year. Moreover, Palantir still has significant opportunities in large and lucrative American economic sectors, including healthcare, finance, and telecommunications.

Is Palantir a Buy Now?

To sum up, Palantir is an up-and-coming company with a product that can deliver meaningful efficiencies thanks to its AI-driven analytics. While its U.S. customer base is growing rapidly, the company has yet to penetrate many key industries and sectors, presenting a compelling growth opportunity. Investors seeking long-term growth potential may find Palantir a promising addition to their portfolio.