Palantir’s Rise: From Obscurity to a Right Smart Growth

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Now, I reckon I’ve seen a good many companies come and go in my time – bubbles bursting faster than a cheap balloon at a picnic. But Palantir Technologies (PLTR +4.79%)… well, they’ve done stirred things up a bit. They’ve been showing growth that’d make a cornstalk sprout in January, and a profit to boot. A rare combination, I tell you. Investors have been snapping up shares like they’re going out of style, pushing the stock up a good 1,700% over the last three years. That’s a heap of money, even for those Wall Street fellas.

It’s a curious thing, though. This ain’t some fresh-faced startup, mind you. Palantir’s been around for over two decades – a veritable Methuselah in the tech world. For a long spell, they were mostly known for workin’ with the government – a respectable trade, to be sure, but not exactly the stuff of headlines. But lately, they’ve stepped into the limelight, and it’s all thanks to a part of the company that, not so long ago, their own chief, Alex Karp, called a “backwater.” A backwater, he said! Seems a curious thing to brag on, doesn’t it? But let’s mosey on over and take a look at this little stream that’s turned into a mighty river.

Putting Data to Work – and Makin’ Sense of It

Now, what exactly does Palantir do? They build software, see, that takes a customer’s data – all the bits and pieces – and makes sense of it. Helps ’em make decisions, strategize, the whole shebang. Their Artificial Intelligence Platform (AIP) is the engine drivin’ this, harnessin’ the power of them newfangled “artificial intelligences” to sort through the mess. Seems a lot of folks are collectin’ data these days, but mighty few know what to do with it. That’s where Palantir comes in.

For a long while, Palantir relied on government contracts. Five years back, they had a mere 14 commercial customers in the States. But then this AIP thing took off, and folks started payin’ attention. Now they’ve got 571 commercial customers, and they’re bringin’ in the money. Last quarter, their U.S. commercial revenue jumped a whopping 137% to $507 million. And they closed a record $1.3 billion in total contract value. A tidy sum, wouldn’t you say?

Mr. Karp himself wrote that this U.S. commercial business, once a “promising yet mostly theoretical backwater,” is now growin’ at an astonishing rate. Seems he’s got a sense of humor, that fella. Or maybe he’s just a shrewd judge of character… and opportunity.

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A Business Doubled in a Year – Now That’s What I Call Progress

This U.S. commercial business has more than doubled in just one year. Now, consider the fact that everybody and their brother is talkin’ about AI these days, and you can see why there’s reason to be optimistic. This AIP lets customers apply AI to their needs without havin’ to build a solution from scratch. Saves ’em time, saves ’em money, and lets ’em get on with the business of makin’ a livin’. It’s a sensible idea, really.

And even though they’ve already gained a good number of customers, there’s still plenty of room to grow. What’s more, Palantir is seein’ current customers expand their contracts, and new contracts are sizable. Seems folks are gettin’ a good return on their investment.

All this suggests that this commercial business might just keep on supercharging growth for a good while yet. And that, my friends, is good news for Palantir shareholders. Though I always say, a little caution never hurt anyone. Especially when dealin’ with these newfangled technologies and the folks who promote ’em. But for now, Palantir’s story is a right smart example of how a company can turn a “backwater” into a mighty river. And that’s a tale worth tellin’, wouldn’t you agree?

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2026-02-07 12:12