Palantir Technologies (PLTR +2.52%) started as many companies do: Its founders (Peter Thiel, Stephen Cohen, Joe Lonsdale, and current CEO Alex Carp) couldn't find the right solution for their needs. In this case, they needed software technology that allowed collaboration without sacrificing data security. That led them to start building Palantir in 2003.
NASDAQ: PLTR
Key Data Points
At its core, Palantir Technologies is a software company. It builds digital infrastructure to help organizations better manage their secure data. Its focus on data security has made it a key software provider for the U.S. government and large corporations.
Palantir has also begun leveraging its expertise in data by providing customers with artificial intelligence (AI) solutions to help them get the most from their data. The company launched its Palantir Artificial Intelligence Platform (AIP) in 2023. It has quickly become an AI leader, with unrelenting demand for its leading capabilities.
Palantir's AI-driven growth potential might have you wondering how to invest in its stock. Here's a step-by-step guide on how to buy stock in the data software company and some factors to consider before adding shares to your portfolio.
Stock Ticker
How to buy Palantir Technologies stock
Investors considering buying Palantir Technologies stock will need to take a few steps before becoming shareholders. This six-step guide will show you how to add the data software company to your portfolio:
- Open your brokerage app: Log in to your brokerage account where you handle your investments.
- Search for the stock: Enter the ticker or company name into the search bar to bring up the stock's trading page.
- Decide how many shares to buy: Consider your investment goals and how much of your portfolio you want to allocate to this stock.
- Select order type: Choose between a market order to buy at the current price or a limit order to specify the maximum price you're willing to pay.
- Submit your order: Confirm the details and submit your buy order.
- Review your purchase: Check your portfolio to ensure your order was filled as expected and adjust your investment strategy accordingly.
Should I invest in Palantir Technologies?
Examining all the data and doing your due diligence is essential before buying shares of any company. This process might confirm your investment thesis or change your mind about buying shares.
Here are a few factors that could lead you to buy shares of Palantir:
- You strongly believe Palantir's stock will outperform the S&P 500 over the next three to five years.
- You're a buy-and-hold investor who plans to own Palantir shares for several years.
- You believe Palantir's AI platform will continue to be a huge growth driver.
- You think Palantir's profitability will continue improving.
- You believe Palantir can grow into its rather lofty valuation.
- You prefer to invest in cash-rich, debt-free companies generating growing free cash flow.
- Investing in Palantir would help diversify your portfolio.
- You like to invest in founder-led companies.
- You don't need dividend income from your investment.
Buy-and-Hold Strategy
On the other hand, here are some things that might lead you away from buying its stock:
- You're not exactly sure what Palantir does.
- You're not convinced Palantir can deliver market-beating returns in the coming years.
- You think AI is a fad.
- You're a more value-focused investor and think Palantir trades at a very high valuation.
- You already own several technology stocks.
- Given the country's deficits and debt, you're concerned about Palantir's exposure to the U.S. government (more than 40% of its total revenue in the first quarter of 2025).
- You're in or nearing retirement and need income-generating investments.
Is Palantir Technologies profitable?
Crunching the data on a company's profitability is crucial to researching a stock. Historically, profit growth is a key driver of stock price returns over the long term. Here's a closer look at Palantir Technologies' profitability.
Palantir Technologies' earnings are growing rapidly. The company's generally accepted accounting principles (GAAP) net income was $214 million ($0.08 per share) in the first quarter of 2025, more than double the $105 million from a year earlier.
Palantir is also generating growing free cash flow. It produced $370 million of adjusted free cash flow during the first quarter of 2025 (a robust 42% margin). That grew its cash balance to more than $5.4 billion at the end of the third quarter (including cash, equivalents, and short-term U.S. Treasury securities). The balance allowed the company to start returning cash to investors via a $1 billion share repurchase program in mid-2023.
The company believes its revenue, earnings, and cash flow will continue growing, driven by robust demand for its AIP. That growing profitability could help drive its share price higher in the future.
Does Palantir Technologies pay a dividend?
Palantir Technologies had not yet started paying a dividend as of mid-2025. While the data analytics company hadn't started making dividend payments, it had begun returning cash to shareholders.
Given that it has only recently started earning a profit and launched a share repurchase program, the company likely won't initiate a dividend anytime soon.
ETFs with exposure to Palantir Technologies
Investors who are unsure whether they want to invest directly in Palantir stock can still gain some exposure to the data software company. An alternative strategy is to make a passive investment by purchasing a fund that holds its stock. One of the most common passive investment vehicles is an exchange-traded fund (ETF).
Exchange-Traded Fund (ETF)
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The bottom line on Palantir Technologies
Palantir Technologies co-founder and CEO Alex Karp is extremely optimistic about the future. In the company's first-quarter 2025 earnings release, he stated: "We are in the middle of a tectonic shift in the adoption of our software.” Karp also noted that: "We are delivering the operating system for the modern enterprise in the era of AI."
There's a lot of competition in the AI space. However, Palantir has positioned itself as an early winner. That makes it a potentially compelling investment opportunity for those seeking exposure to the AI megatrend.
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