There’s so much buzz around Palantir (ticker: PLTR) that we just couldn’t ignore it. This company develops Big Data and AI solutions. In its early days, Palantir worked on projects for U.S. intelligence agencies. Now, it covers a wide range of industries—from banking to healthcare. Let’s break down the Q4 2024 earnings, evaluate the prospects and risks, and tackle the big question: Is Palantir a Good Stock to buy or better to sell?
Palantir (PLTR) after Q4 2024 Earnings: Recent Performance
On the evening of February 3, 2025, Palantir Technologies (PLTR) released its financial report for the fourth quarter of 2024. The company’s revenue exceeded analyst expectations, rising by 36% compared to the same period in 2023 and hitting $828 million (analysts had forecast $776 million). No wonder PLTR shares jumped 22% in response.
Palantir also announced its outlook for 2025, expecting revenue this quarter to be between $858 million and $862 million (vs. the $799 million consensus). Meanwhile, sales in the U.S. saw substantial growth—commercial revenue shot up 64%, and government contracts rose 45%. For the entire year 2024, Palantir’s sales climbed by 29%.
At the time of writing (February 14, 2025), the stock is trading at $119 per share. That’s a 58% increase just since the start of 2025, and a staggering 368% gain over the past year (February 2024–February 2025). PLTR’s market cap now stands at $271 billion. Back in February 2023, the stock hovered around $10!
Palantir’s Growth Potential: Is Palantir a Good Stock to Buy?
A major part of Palantir’s success comes from its core products: Gotham (for government clients), Foundry (for commercial clients), and Apollo (which ensures continuous software updates). Palantir delivers a comprehensive ecosystem that enables real-time data processing. For corporations, this means optimizing production processes; for government agencies, it means more efficient monitoring and project management.
What sets Palantir (PLTR) apart is its focus on long-term contracts with major government and military customers. The company recently expanded its contract with the U.S. Army to $619 million through 2028. Plus, Palantir is scaling further through cloud services and ready-to-deploy Foundry modules, making PLTR more accessible to mid-sized businesses.
Potential Challenges and Risks
Budget Cuts in the U.S. Palantir is prepared to work with the newly formed Department of Government Efficiency (DOGE) under Elon Musk. Yet, given President Donald Trump’s push for trimming government spending, there’s always the possibility of budget reductions.
Competition. The U.S. Big Data and AI market is complex. A growing number of startups are entering the scene, and tech giants like IBM, Microsoft, and Oracle all offer their own analytics and cloud solutions.
Market Valuation Complexity. As CNBC notes, analysts find it incredibly hard to determine the upper limit for Palantir’s solutions since use cases span everything from the U.S. military to retail. That leads to target prices from Wall Street often lagging behind actual market dynamics.
February 2025 Forecast: Is Palantir a Good Stock to Buy?
Based on the recent Q4 2024 results (released February 3, 2025) and the upbeat outlook for this year, Palantir (PLTR) appears to be on an optimistic track. A 20% jump in stock price following the earnings call isn’t just a passing flare—it’s the market’s response to actual performance: revenue, profits, and future projections all beat expectations.
Our call is “Hold/Buy with caution.” While there’s significant upside, one must remain mindful of risks tied to government budgets and the inherent volatility of the AI sector. If you were interested in this article, we recommend reading more in the same format about Reddit (RDDT) and Robinhood (HOOD)
This material is for informational purposes only and does not constitute financial advice.
