Palantir Technologies is a data analytics software company founded in 2003, specializing in big data analytics solutions for government agencies and commercial enterprises [1][5]. The company offers three main platforms: Gotham (used by government clients for intelligence and defense), Foundry (a central operating system for enterprise data), and Apollo (for software deployment), along with its newer Artificial Intelligence Platform (AIP) that integrates large language models [3][5]. Palantir's business model is service-heavy, involving high-touch customer relationships with clients across sectors including defense, healthcare, finance, and manufacturing [1][3].

• Reported Q4 2024 revenue of $827.52 million, significantly exceeding analyst expectations with 36.03% year-over-year growth [2][3]
• Achieved quarterly earnings per share (EPS) of $0.14, outperforming the consensus estimate of $0.11 [2]
• U.S. commercial revenue grew 44% year-over-year, demonstrating strong market penetration in the commercial sector [4]
• Management described the quarter as "eviscerated" due to accelerating demand for AI solutions [4]

• Annual revenue for 2024 reached $2.87 billion, representing 28.79% growth compared to 2023 [2][3]
• Consistent revenue growth trajectory with 5-year CAGR of approximately 40%, increasing from $743 million in 2019 to $2.87 billion in 2024 [5]
• U.S. government contracts remain a significant revenue source, but commercial sector growth is accelerating, indicating successful diversification [4][5]
• Company's revenue growth (28.79%) significantly outpaces the software industry average (13.86%), positioning it as a high-growth leader [2][5]
• Management has guided for 31% revenue growth in 2025, reflecting confidence in continued strong performance [4]

• Strong balance sheet with $5.1 billion in shareholder equity and minimal debt, resulting in a debt-to-equity ratio of approximately 0.25 [5]
• Positive free cash flow of $1.1 billion, demonstrating strong cash generation capabilities [3]
• Gross margin improved from 80% to 82%, indicating enhanced operational efficiency [4]
• Total debt of $239.22 million, which is 85.16% lower than the software sector average, reflecting conservative financial management [2]
• Altman Z-Score of 76.69 indicates extremely low bankruptcy risk and strong overall financial stability [4]

Palantir is led by co-founder and CEO Alex Karp, who has been at the helm since 2003, demonstrating long-term leadership stability with a tenure of over 22 years [1][3]. The management team includes other co-founders Peter Thiel (Chairman) and Stephen Cohen, with executives having significant ownership stakes in the company, aligning their interests with shareholders – Karp owns 2.39% ($5.1B), Thiel owns 4.28% ($9.1B), and Cohen owns 0.53% ($1.1B) [1].

Palantir's current valuation metrics are significantly elevated compared to industry averages, with a P/E ratio of 255.29 (3.32x higher than peers), P/S ratio of 41.59 (3.52x higher than peers), and P/B ratio of 23.99 (1.43x higher than peers) [2][3]. The average analyst price target is $53.15, suggesting a 52% downside from current levels, with a wide range from $11.11 to $94.50 [3]. DCF valuation models indicate an intrinsic value between $4.48 and $17.02 per share, suggesting the stock is substantially overvalued at current price levels of approximately $110 [3][4].

Palantir faces several significant risks including intense competition in the data analytics space from established players like IBM, Oracle, and Salesforce as well as emerging AI companies [2][5]. The company's high valuation multiples create substantial downside risk if growth slows or profitability targets aren't met [3]. Additionally, Palantir's heavy dependence on government contracts (particularly U.S. government) creates concentration risk, while regulatory changes around data privacy could impact operations [5].

While Palantir demonstrates impressive revenue growth, improving profitability, and strong financial health, its current valuation appears to have priced in extremely optimistic future performance. Given the substantial gap between current market price and estimated intrinsic value, along with competitive pressures in the AI and data analytics space, a SELL recommendation is appropriate for most investors. Those with existing positions might consider reducing exposure while maintaining a small position to benefit from potential continued momentum.