After the performance turned around in 2023, Palantir Technologies (PLTR, Financial) shares price were set on a rally track and today on Nov. 5 the shares jumped 22% and reached its new high today at $51.19 per share marking its stellar Q3 better than expected results.
2024 is a remarkable year for Palantir with 207% uptick from year to date and 453% in five years return. The question lingers whether this joyful ride will continue to roll because the price is already exceeding the superb performance.
For the first nine months in 2024 Palantir reported a significant increase in revenue of $725.5 million from $560.2 million in the same period in 2023 and therefore had its adjusted earning of 10 cents per share compared to 7 cents per share in the prior year. These numbers beat Wall Street analysts that expect Palantir's to book only 9 cents in earnings per share on $705 million in revenue.
In this AI boom, Palantir that specializes in big data analytics offers unique value to transform complex data into actionable insights regardless of the format or structure. And that enables organizations to gain a comprehensive view of their operations with AI-driven insights. Their products are known for being user friendly, very easy to use, and therefore presenting high growth. The customer growth is 39% year over year to 629 customers and 6% within the last quarter.
Overall, Palantir has a GF Score of 67, which suggests a moderate potential for future performance.
The score above suggests a remarkable growth and strong financial position with modest profitability and overvalued price. As for the price, the current price of $50.44 reflects the price to earnings ratio of 298.56x which is relatively high and suggests overvaluation. Palantir is categorized as a high-risk investment with significant uncertainty and a risk-return tradeoff.
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