Five years ago, Palantir (PLTR 0.57%) stock benefited from a different boom. At the time, investors scrambled to buy shares as rock-bottom interest rates sent investors into what at the time were emerging tech stocks.
Nonetheless, over the last five years, Palantir took investors on a roller-coaster ride that few could have predicted.
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Palantir's returns
If you'd invested $100 in Palantir five years ago, you would have $935 today.
However, the gains would not have come without some volatility. By early 2021, the size of that position had spiked to over $200 before the 2022 bear market took its toll. The decline was so profound, that in December 2022, that position was worth less than $34 at its low.
NASDAQ: PLTR
Key Data Points
Fortunately, a boom in generative AI drove renewed interest in tech stocks like Palantir. Moreover, the introduction of its Artificial Intelligence Platform (AIP) brought eye-popping productivity gains to Palantir's customers, and interest in this product led to accelerating revenue growth rates.
With that, investors have bid the stock dramatically higher, particularly over the last year. Although the stock sold off significantly in November, its P/E ratio of more than 390 has so far not deterred interest.
Admittedly, it remains unclear whether the selling of Palantir stock has just begun or if this is a temporary pullback. But whatever the future holds, it's unlikely to change the fact that Palantir stock has been a clear winner for those who have held it for five years or more.
