What happened
Lake Street Private Wealth, a U.S. asset manager with $700 million in reportable assets under management (AUM), disclosed in its latest 13-F filing with the SEC that it purchased 47,089 additional shares of Palantir Technologies (PLTR 0.01%) in the second quarter of 2025.
The transaction brought its total position to 54,798 shares, with anestimated market value of $8.6 million as of Aug. 21, 2025.
What else to know
Top holdings for Lake Street after the filing, as of June 30, 2025, are as follows:
- Vanguard Value ETF: $42.12 million (5.99% of AUM)
- Nvidia: $38.73 million (5.51% of AUM)
- Vanguard Growth ETF: $33.83 million (4.81% of AUM)
- Apple: $30.67 million (4.36% of AUM)
- Invesco QQQ Trust, Series I ETF: $21.21 million (3.02% of AUM)
As of Aug. 21, 2025, Palantir shares were trading at $156.18, up 380% over the past year, outperforming the S&P 500 by 365 percentage points.
The company’s 5-year revenue compound annual growth rate (CAGR) was 31.0% (for the five years ended 2025, calculated from annual income statement data).
Palantir stock is valued at a forward price/earnings ratio of 240, and a trailing 12-month EV/EBITDA ratio of 610.3, as of Aug. 21, 2025.
Company overview
| Metric | Value |
|---|---|
| Market capitalization | $370.5 billion |
| Revenue (TTM) | $3.44 billion |
| Net income (TTM) | $763.29 million |
| One-year price change | 380.0% |
Company snapshot
- Palantir offers advanced software platforms including Gotham, Foundry, Apollo, and its Artificial Intelligence Platform (AIP), supporting data integration, analytics, and operational intelligence for enterprise and government clients.
- Key customers include government agencies, defense and intelligence organizations, and large enterprises seeking robust data analytics and AI-driven decision-making tools.
- The company generates revenue primarily through software licensing, platform subscriptions, and long-term service contracts.
Palantir Technologies Inc. operates at scale as a leading provider of data analytics and artificial intelligence platforms, serving both public sector and commercial clients globally. The company’s strategy focuses on delivering mission-critical software that enables organizations to extract actionable insights from complex datasets. Palantir’s competitive edge lies in its deep integration with government and enterprise customers, supported by proprietary technology that addresses high-value, security-sensitive use cases.
Foolish take
Palantir’s is in a uniquely strong position -- its profit margins are going up with rising revenue. Put simply, marginal revenue is driving down overall unit costs.
Driving this phenomenal growth is its government and enterprise artificial intelligence (AI) business, especially within the United States. In the second quarter of 2025, quarterly revenue exceeded $1 billion for the first time, doubling in just 10 quarters.
Palantir’s data analytics and AI platforms remain its bedrock offerings. Its Artificial Intelligence Platform (AIP) is essentially a software over which Palantir’s customers build their own software, including large-language model (LLM) customizations.
Segment-wise, the U.S. Government continues to be Palantir’s largest customer, generating nearly 43% of total revenue in the second quarter. However, U.S. Commercial was Palantir’s fastest growing segment, with a 93% year-on-year growth. Enterprises across industries, such as healthcare, finance, and manufacturing, are awakening to tangible operational benefits to deploying artificial intelligence in tandem with Palantir’s offerings.
Looking ahead, this trend should continue. Government revenue is still increasing. However, commercial enterprises should be Palantir’s primary source of future growth, which is still in its nascent stages, given the tremendous demand for AI-based solutions.
However, the stock price is being driven up by more than just revenue growth; the operating profit margin has also steadily increased, reaching 16.5% in the second quarter, especially notable given their profitability turnaround just two years prior. As more customers use Palantir’s systems, driving revenue growth, the corresponding rise in costs has been lower.
The stock’s seemingly high valuation, at 115 times trailing-12-month sales and 519 times earnings, shouldn't be a cause for alarm, given its rising profitability and the emergence of exciting new markets through private enterprises. The business is too early in its lifecycle to make sense of these ratios.
Glossary
Asset manager:A firm or individual managing investments on behalf of clients, such as funds or individuals.
Reportable assets under management (AUM):The total market value of investments a firm manages and must disclose to regulators.
Quarterly SEC filing:A required report submitted every three months to the U.S. Securities and Exchange Commission, detailing holdings and transactions.
Market value:The current total worth of an investment, based on the latest available price.
Compound annual growth rate (CAGR):The average yearly growth rate of an investment over a specified period, accounting for compounding.
Forward price/earnings ratio:A valuation metric comparing a company's current share price to its forecasted earnings per share.
EV/EBITDA ratio:A valuation measure comparing a company’s enterprise value to its earnings before interest, taxes, depreciation, and amortization.
Total return:The investment's price change plus all dividends and distributions, assuming those payouts are reinvested.
Dividend-adjusted prices:Stock prices that include the effect of dividends paid, reflecting total shareholder return.
Artificial Intelligence Platform (AIP):Palantir’s software suite designed to help organizations use artificial intelligence for data analysis and decision-making.
Proprietary technology:Technology owned and controlled by a company, often protected by patents or trade secrets.
TTM:The 12-month period ending with the most recent quarterly report.
