"Shares of Palantir Technologies Inc. (NASDAQ:PLTR) sold off at the start of the new year, losing 14.05% over past five trading sessions after losing 0.84% the five prior. The damage from a rotation out of AI stocks continues, but the stock remains up 121.10% over the past year, including a gain of 20.66% over the past six months. Since going public on Oct. 2, 2020, it has gained an eye-popping 1,724.57%."
"In late July, it was announced that Palantir secured a $10 billion software and data contract with the U.S. Army. In May, the Trump administration rewarded a federal contract worth hundreds of millions to Palantir with the objective of creating a database on every U.S. citizen. On April 21, Investor's Business Daily reported that Palantir won an immigration tracking federal contract from the U.S. Immigration and Customs Enforcement (ICE)."
"Big Data is expected to be big business in the years ahead. According to platform provider Edge Delta, the market for data services is projected to grow from $220.2 billion in 2023 to $401.2 billion by 2028 - an increase of 82.2%. Palantir is a major player in the space. The company was co-founded by entrepreneur and venture capitalist Peter Thiel, who was also the co-founder of PayPal Holdings (NASDAQ:PYPL) and the first outside investor in Facebook."
Palantir shares fell early in the year, losing 14.05% over five trading sessions while remaining up 121.10% year-over-year and 1,724.57% since its 2020 IPO. Q3 results beat estimates with EPS of $0.21 and revenue of $1.18 billion, and guidance tied growth to adoption of AI software platforms. The company secured several large government contracts, including a $10 billion U.S. Army deal, a £1.5 billion U.K. defense partnership, and federal contracts for immigration and citizen data systems. The market for data services is projected to grow substantially, and Palantir is positioned as a major Big Data player.
Read at 24/7 Wall St.
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