A recent filing revealed that Rep. Marjorie Taylor Greene, who is a key aide to President Donald Trump, purchased Palantir (PLTR) stock. The purchase was between $1,000 and $15,000 based on the filing and occurred on Feb. 12.
Shares of the data analytics company have been on a tear over the last year, up nearly 300%.
So, what should investors make of Greene’s purchase? And should retail investors consider adding shares now?
Palantir Posts Solid Q4 Results
Palantir’s numbers for the most recent quarter beat on both revenue and earnings. Revenues climbed by 36% from the previous year to $828 million, aided by U.S. commercial and government revenues growing by 64% and 45% on a year-over-year basis to $214 million and $343 million, respectively.
Earnings witnessed an even sharper rise of 75% in the same period to $0.14, outpacing the consensus estimate of $0.11. Notably, this marked the sixth consecutive quarter of earnings beats from the company.
U.S. commercial total contract value rose by 134% from the prior year to $803 million along with a 43% yearly rise in total customer count, reflecting strong demand for the company’s offerings.
Growth was also seen on the cash flow front with Palantir reporting net cash from operating activities of $1.2 billion for the year ended Dec. 31.
The company’s revenue estimates for 2025 of between $3.741 billion and $3.757 billion also came in ahead of the $3.52 billion estimate.
Worth the Hype?
Palantir remains strategically positioned for substantial revenue growth as it continues integrating generative AI into its data analytics ecosystem. The company’s core platforms, Gotham for government applications and Foundry for commercial enterprises, are designed to synthesize data from disparate sources, a capability that positions Palantir favorably in an era where AI-driven solutions are rapidly becoming standardized.
The company’s AI applications have already demonstrated significant value to clients. A major U.S. pharmacy chain utilized Palantir’s technology to automate prescription fulfillment and streamline patient engagement. Additionally, an American telecom company leveraged Palantir’s software to accelerate the decommissioning of outdated network equipment, yielding considerable cost savings. Meanwhile, defense technology firm Anduril reported up to a 200-fold improvement in its ability to forecast and mitigate supply shortages.
Further strengthening its government partnerships, Palantir has enhanced its Artificial Intelligence Platform (AIP) by integrating Grok, a large language model (LLM) developed by Elon Musk’s xAI. Grok joins a suite of other advanced AI models, including Meta’s (META) Llama, Google’s (GOOGL) Gemini, OpenAI’s GPT-4, and Anthropic’s Claude, reinforcing Palantir’s ability to cater to diverse client needs.
However, CEO Alex Karp’s acknowledgement that Palantir lacks a structured pricing strategy in favor of gaining AI market share raises concerns. The competitive landscape is fierce, with major players such as Amazon (AMZN), Microsoft (MSFT), and Google all vying for enterprise AI dominance.
From a valuation perspective, Palantir’s stock remains expensive, posing a challenge for value-focused investors. The company trades at a forward price-earnings (P/E) ratio of 324x, a price-sales (P/S) ratio of 80.6x, and a price-to-cash-flow (P/CF) ratio of 144.66x — significantly higher than the sector medians of 24.39x, 3.18x, and 20.79x, respectively. These elevated multiples suggest that investors should weigh the risks carefully before considering an entry at current levels.
Analyst Opinion
Considering all this, analysts have deemed the stock a “Hold” with a mean target price that has already been surpassed. The high target price of $141 denotes upside potential of about 55.5% from current levels. Out of 19 analysts covering the stock, three have a “Strong Buy” rating, 10 have a “Hold” rating, one has a “Moderate Sell” rating and five have a “Strong Sell” rating.
