Rise of Retail Investors and Tesla's Dominance
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Jan 30 2026
0mins
Should l Buy PLTR?
Source: CNBC
- Rise of Retail Investors: Five years ago, the meme stock craze initiated by retail investors, particularly through the short squeeze of GameStop, became a pivotal event in modern market history, reshaping trading dynamics.
- Tesla's Market Position: In 2023, Tesla surpassed the SPDR S&P 500 ETF to become the most purchased stock by retail investors, reflecting its skyrocketing popularity among small-scale investors, having not even made the top 20 four years prior.
- Performance Comparison: Tesla's shares more than doubled in 2023, while the Nasdaq Composite only gained 43%, highlighting Tesla's robust recovery and the intense market focus on its performance.
- Influence of Retail Investors: Blackrock estimates that retail investors now account for nearly 20% of average daily flows, a significant increase from low single-digit percentages before the pandemic, underscoring their growing impact on the market.
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Analyst Views on PLTR
Wall Street analysts forecast PLTR stock price to rise
17 Analyst Rating
5 Buy
10 Hold
2 Sell
Hold
Current: 129.130
Low
50.00
Averages
192.88
High
255.00
Current: 129.130
Low
50.00
Averages
192.88
High
255.00
About PLTR
Palantir Technologies Inc. is engaged in building software to assist in counterterrorism investigations and operations. The Company has built four principal software platforms, including Palantir Gotham (Gotham), Palantir Foundry (Foundry), Palantir Apollo (Apollo), and Palantir Artificial Intelligence Platform (AIP). Apollo is a cloud-agnostic, single control layer that coordinates ongoing delivery of new features, security updates, and platform configurations, helping to ensure the continuous operation of critical systems. Gotham enables users to identify patterns hidden deep within datasets, ranging from signals intelligence sources to reports from confidential informants. Foundry transforms the ways organizations operate by creating a central operating system for their data. AIP enables responsible artificial intelligence (AI)-advantage across the enterprise by using primary, core components built to effectively activate large language models and other AI within any organization.
About the author

Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Substantial Investment Returns: An investment of $10,000 at Palantir's IPO would now be worth over $142,820, despite a decline from a peak of $180,000, indicating robust investment return potential.
- Dual Growth from Government and Commercial Clients: Palantir's government revenue continues to grow in double digits, while commercial clients are rapidly increasing, reflecting widespread demand for its software in data application and strategy revamping, suggesting significant future growth potential.
- AI Platform Boosts Earnings: The launch of the Artificial Intelligence Platform (AIP) in 2023 has supercharged Palantir's technology and earnings growth, with a surge in commercial customer numbers indicating that the company may see more shareholder gains ahead.
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- Significant Investment Returns: An investment of $10,000 in Palantir at its 2020 IPO would now exceed $142,820, despite a recent decline from a peak of $180,000, highlighting the company's robust growth potential in the AI sector.
- Government Contract Growth: Palantir has built a solid portfolio of government contracts, with government revenue continuing to grow in double digits, indicating a strong foundation in the public sector that is likely to drive future revenue growth.
- Surge in Commercial Customers: The launch of Palantir's software has led to a rapid increase in commercial customers, enhancing their ability to leverage data for decision-making, suggesting significant expansion potential in the commercial market with ample room for future growth.
- AI Platform Boost: The introduction of the Artificial Intelligence Platform (AIP) in 2023 has supercharged Palantir's technology and earnings growth, and combined with strong government and commercial performance, indicates the potential for increased shareholder returns in the future.
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- Palantir's Rapid Growth: Palantir's fourth-quarter revenue surged 70% year-over-year, with a 34% increase in customer count, and its 'Rule of 40' metric jumped from 81% to 127%, indicating high profitability from sales, although international expansion is hindered by a talent shortage.
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- Palantir's Rapid Growth: Palantir posted a 70% year-over-year revenue increase in Q4, with a 34% rise in customer count, and its 'Rule of 40' score surged from 81% to 127%, demonstrating high profitability per sales dollar, despite challenges in international expansion.
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- Vanguard Tech ETF Investment Opportunity: The Vanguard Information Technology ETF includes several 'Magnificent Seven' stocks, offering exposure to over 300 growth stocks, and while market volatility is a concern, long-term investors can still benefit significantly.
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- Significant Revenue Growth: Palantir has achieved double-digit revenue growth over the past few quarters, driven by innovations in artificial intelligence that enable customers to easily apply AI, thereby rapidly boosting the company's performance.
- Substantial Investment Returns: An investment of $10,000 at Palantir's 2020 IPO would now be worth over $142,820, despite a recent pullback in stock price, indicating strong investment potential.
- Growing Government Contracts: Palantir has long relied on government contracts, with current government revenue continuing to grow in double digits, while commercial customers are also rapidly increasing, reflecting strong demand across multiple sectors.
- AI Platform Launch: The launch of Palantir's Artificial Intelligence Platform (AIP) in 2023 has further enhanced its technological capabilities and driven growth in its commercial business, suggesting that shareholders may see more gains in the future.
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