Palantir Sees First Profitable Year as AI Platform Fuels Growth
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Palantir's Q4 earnings showed acceleration in its US commercial business, driving its first profitable year. Stock is up 47% YTD on this optimism.
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Revenue growth is accelerating, poised to rise from 17% last year to 20-21% in 2024-2025, driven by Palantir's AI platform seeing huge demand.
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US commercial revenue specifically surged 70% YoY in Q4 after AI platform launch, far outpacing total company growth rates.
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Strong customer acquisition and expansion is driving growth, with US commercial seeing 55% more customers YoY.
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Valuation remains a risk despite improvements in profitability and cash flow, with shares at their highest ratios since 2021 despite slower growth.