Palantir Technologies (NYSE:PLTR) was once most associated with his work with governments, helping them better harness the power of their data. But lately, this software-as-a-service (SaaS) player has also become an important partner for companies. That, and Palantir’s use of artificial intelligence (AI) to boost its capabilities, have helped its profits soar in recent quarters.
Today, Palantir’s commercial revenues in the US are growing faster than government revenues. And the company’s AI boot camps, training sessions that offer potential customers an introduction to the company’s services, are also generating profits. The company recently reported the highest quarterly profit in its entire twenty-year history.
Considering all this, if you had invested $10,000 in Palantir five years ago, how much would you have today? Let’s find out.
A three-digit increase
Palantir’s stock price has followed these successes, rising triple digits over the past five years. So if you had invested €10,000 in this innovative company at the time, your investment would be worth more than €25,000 today. That’s reason to cheer, but if you hold your position well into the future, you might have a second reason to cheer.
It’s important to remember that the AI growth story is still in its infancy, with analysts predicting the AI market will grow from approximately $200 billion today to more than $1 trillion by the end of the decade. And Palantir just launched its Artificial Intelligence Platform and bootcamps last year, so we’re probably at the beginning of this growth opportunity.
In its most recent earnings report, Palantir said sales reflected “unbridled and growing demand” as potential customers rushed to participate in boot camps — and signed contracts for AIP soon after. Palantir reported a 40% increase in U.S. commercial revenue in the quarter and expects commercial revenue to rise 45% or more this year.
All of this means that Palantir stock, fueled by revenue growth, could see more gains as this AI growth story continues.
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Adria Cimino has no position in any of the stocks mentioned. The Motley Fool holds positions in and recommends Palantir Technologies. The Motley Fool has a disclosure policy.
If you invested $10,000 in Palantir Technologies stock five years ago, here’s how much you’d have today. originally published by The Motley Fool
