Palantir (PLTR 3.73%) is one of the hottest artificial intelligence (AI) stocks on Wall Street. But, with its shares up 213% over the last 12 months, many investors might think it's too late to load up on Palantir.
Here's why that's not the case.
Palantir is just getting started
For any company that's early in its lifecycle, there are numerous obstacles to overcome:
- The company must convince investors (and customers) that its product has potential.
- Its CEO must put forth a vision that captivates Wall Street.
- It must demonstrate -- through its financial results -- that it can translate its potential into dollars and cents.
Palantir, a company specializing in AI-powered data analysis, is well on its way across all three measures.
First, Palantir's customer count is soaring. As you can see in the chart below, Palantir has added 220 customers over the last two years, growing its total customer base by 79%. That shows that organizations -- many of which struggle to organize and understand the mountains of data they produce -- are eager to utilize Palantir's data analysis platform to gain insights and streamline their operations.
Image source: Statista.
Second, Palantir's CEO, Alex Karp, is an up-and-coming star on Wall Street. Straightforward and always memorable, Karp doesn't mince words, and he's gone out of his way to declare that he sees "a very, very strong year [ahead], especially in U.S. commercial."
Third, as the company's most recent earnings results show, Palantir is translating promises into action. In its most recent quarter (the three months ending on Dec. 31, 2023), revenue soared 20% year-over-year; earnings jumped 203%.
In short, Palantir looks like it's just getting started -- rather than preparing to flame out.
Granted, investors should be cautious and remember that growth stocks like Palantir can be volatile. But, for those willing to hold through inevitable ups and downs, Palantir looks like a growth story worth remembering.
