Palantir Technologies (PLTR +1.77%) has impressed investors with its incredible growth in a short period of time. Though this company has been around for more than 20 years, during this artificial intelligence (AI) boom, its revenue growth and stock performance have looked more like those of an exciting tech start-up.
Revenue has soared in the double-digits quarter after quarter, and the stock price has skyrocketed. The cause for such momentum? Palantir offers its customers an easy way to apply AI to their needs and generate big results.
So, we know that an investment in Palantir since its initial public offering has probably been successful -- but exactly how much would you have made if you'd invested $10,000 in Palantir at that time? Let's find out.
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Palantir's 2020 IPO
It's important to note that Palantir didn't go public long ago. The company remained private for most of its history and only launched an IPO back in 2020. So, investors who have grown wealth through a Palantir investment have done so just in recent years. Now, let's look at the figures. If you'd invested $10,000 in this technology company during its IPO, today, you would have more than $142,820. Since Palantir stock has pared some gains, this is down from a peak of more than $180,000 just a few months ago.
Now, the key question to ask is: Will the stock climb higher and add to your gains? It's impossible to predict near-term stock movements with 100% accuracy, of course. But if we look to the long term, we have a better chance of understanding a particular stock's potential.
NASDAQ: PLTR
Key Data Points
A portfolio of government contracts
Palantir, over its long history, has built up a solid portfolio of government work -- it relied on government contracts in its early days. This is far from over, and in fact, government revenue continues to grow in the double digits. In addition to this, today, commercial customers are also rushing to Palantir. The company's software helps customers harness the power of their data and use it to take important actions -- such as organizing workflows or revamping a strategy. The possibilities may be endless.
And Palantir's 2023 launch of its Artificial Intelligence Platform (AIP), which adds AI to the picture, supercharged its technology and its earnings growth. In fact, the release of AIP coincides with the gains the company is seeing in its commercial business. U.S. commercial customers are increasing rapidly in number, but the good news is, there's still plenty of room for additional growth here.
All of this suggests that, with the government and commercial businesses going strong, Palantir may have plenty of bright days ahead. And over time, that could translate into more gains for shareholders.
