Palantir Technologies, founded in 2003, has reached a market valuation of $375 billion after a 2% stock increase. It ranks 20th among the most valuable companies in the U.S.
Palantir's Market Cap Surge
Palantir has crossed the significant milestone of $375 billion following a 2% rise in its stock price on Friday. This positions the company among the 20 most valuable firms in the U.S., ahead of brands like Home Depot, Procter & Gamble, and Coca-Cola. The main catalyst for stock growth this year has been investor enthusiasm for its developments in artificial intelligence (AI) and its connections with the Trump administration.
Comparison with Other Companies
Despite its value of $375 billion, Palantir's total revenue over the past year was only $3.1 billion, significantly lower than most top 20 companies. For instance, Mastercard, which is above Palantir with a market cap of $518 billion, reported $29 billion for the same period. Nevertheless, Palantir has overtaken companies like Salesforce and IBM, ranking among the 10 largest U.S. tech firms by market cap.
Expert Analysis
Piper Sandler has officially started covering Palantir, issuing an overweight rating with a price target of $170. Analyst Brent Bracelin noted that the company's business model is unique and has the potential to become an 'AI secular winner'. However, he also pointed out the risks associated with its high valuation and stock volatility. Furthermore, retail investors show a strong interest in AI-related stocks, boosting demand for Palantir's shares.
Palantir continues to capture investor attention despite its volatility and high stock valuation. The company's future remains uncertain, and many are observing its developments in the AI sector.
