What Your $10,000 Investment in Palantir at the Beginning of the Year Would Be Worth Today
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Sep 01 2025
0mins
Source: Fool
Palantir Technologies Overview
- Strong Revenue Growth: Palantir Technologies has experienced significant revenue growth, surpassing $1 billion in the recent quarter, driven by demand for its AI-driven solutions from both government and commercial sectors.
- Stock Valuation Concerns: The company's stock has seen its valuation soar, trading at over 200 times forward earnings estimates, leading analysts to label it as overvalued and recommend caution.
Investment Performance
- Investment Returns: An investment of $10,000 in Palantir at the beginning of 2025 would have more than doubled to over $20,700, reflecting a gain of more than 100% despite market fluctuations.
- Market Volatility: The stock faced challenges earlier in the year due to economic concerns and potential tariffs, but has shown resilience and growth.
Business Growth and AI Integration
- Commercial Business Expansion: Palantir's U.S. commercial customer base has grown to 485, a significant increase from about 14 customers a few years ago, with total contract value rising 222% to $843 million.
- AI Platform Impact: The company's AI platform is proving transformative for clients, enabling rapid data processing and fraud detection, which enhances operational efficiency.
Future Outlook
- Increased Revenue Guidance: Palantir has raised its full-year guidance for total revenue, U.S. commercial revenue, adjusted income from operations, and adjusted free cash flow, indicating strong future performance.
- Long-Term Growth Potential: With the AI market projected to exceed $2 trillion in the coming years, Palantir is well-positioned to capitalize on this growth, suggesting potential for continued earnings expansion and investment returns.
Analyst Views on PLTR
Wall Street analysts forecast PLTR stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for PLTR is 192.88 USD with a low forecast of 50.00 USD and a high forecast of 255.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
17 Analyst Rating
5 Buy
10 Hold
2 Sell
Hold
Current: 165.330
Low
50.00
Averages
192.88
High
255.00
Current: 165.330
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.
