Palantir: A Curious Case of Numbers

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Now, Palantir Technologies – a name that sounds suspiciously like a villain from a dusty old spy novel – had a bit of a wobble in January. The share price dipped, you see, like a clumsy penguin on an icy slope. Folks got their knickers in a twist, worrying about the price tag and whether this clever company could keep growing at a lick. But then – a most delightful surprise! – the earnings report arrived, and suddenly, the stock did a little jig, leaping upwards like a startled frog. A curious business, indeed.

Great Expectations (and a Bit of Magic)

Palantir, you see, has become rather popular with this newfangled “Artificial Intelligence” craze. It’s like giving a particularly bright raven a toolbox – suddenly, everyone wants to know what it can build. Over the last three years, the share price has zoomed upwards, a dizzying climb that would make even a seasoned mountaineer feel queasy. They’ve concocted a rather clever platform, a sort of digital sorting hat, that takes mountains of messy data and turns it into something useful. It’s a bit like alchemy, really, turning base metals into gold, except with numbers instead of lead.

What makes Palantir special? Well, they’ve been at this game for years, quietly tinkering away before everyone else even knew AI was a thing. It’s like being the first to discover a secret garden – a distinct advantage, wouldn’t you say? They tie up their customers with long-term contracts, ensuring a steady stream of shillings for years to come. And while they started with government and military types (a rather stern bunch, if you ask me), now everyone wants a piece of the AI pie, and Palantir is selling slices faster than a baker on market day.

The last quarter of 2025 was a particularly splendid showing. Their American commercial business boomed, growing by a whopping 137%! That pulled up the whole American operation by 93%, which in turn boosted the total growth to a rather impressive 70%. Even their older government business, usually a bit stuffy and predictable, managed a respectable 66% increase.

They closed a record $4.3 billion in contracts – a mountain of paperwork, I assure you – and managed to stuff a hefty $609 million in net income into their coffers, with a rather generous 43% margin. These aren’t just pretty numbers; they suggest that Palantir has a good many years of growth ahead of it, provided, of course, nothing terribly unfortunate happens.

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The Worries (and a Rather Large Valuation)

Now, all this success has attracted attention, naturally. Investors are circling like vultures, eager to get their hands on a piece of the action. But here’s the rub: Palantir’s share price is currently valued at a rather astronomical 346 times its earnings from the last year. That’s like paying a king’s ransom for a single biscuit! And folks were getting jittery, worried that the company might slow down.

The most important thing to watch, I noted last week, was whether sales would accelerate. Investors need to see that kind of momentum at this price. And Palantir delivered! The business looks as strong as ever. Management is predicting a 61% increase in sales for 2026 – a rather ambitious goal, but they seem confident. However, let’s not get carried away. There’s very little room for error at this valuation. One wrong step, and the whole thing could come tumbling down. It’s a bit like balancing a stack of teacups on a wobbly table.

There’s still time for new investors to benefit, provided they plan to hold on for many years and can stomach a bit of turbulence. Don’t expect the same thrilling results it’s delivered recently. A sensible strategy – perhaps buying a little bit each month – might be the way to go. After all, even the most magnificent castles are built one brick at a time.

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2026-02-03 15:52