Palantir Technologies‘ stock is on a high. In just two trading days, the share price shot up by up to 50%. Is this the beginning of a super rally or boundless exaggeration?

Unique software, lucrative business field: Palantir offers software and services for analyzing huge amounts of data – a core area of artificial intelligence. In the past, the company has faced criticism due to its clientele (governments, military, intelligence agencies). However, the AI hype has paved the way for Palantir to lucrative deals in the commercial sector.

Revenue growth in the commercial sector: The latest quarterly figures prove it: Palantir is convincing across the board. Revenue exceeded expectations, and earnings per share reached analyst estimates. Of particular note is the strong growth in the commercial sector: Revenues increased by 32% year-on-year, and in the US market by a whopping 70%.

Solid foundation for further growth: In fiscal year 2023, Palantir closed with a 17% increase in revenue to $2.2 billion. The operating margin reached 28% (an increase of 600 basis points) and the cash flow margin an impressive 33%.

New catalysts for 2024: National Health Service (NHS) contract: Palantir is modernizing the data platform of the British National Health Service. A reference project with a signal effect for further customers in the healthcare market. Titan contract: Palantir is competing for a multi-billion dollar contract from the US Department of Defense for a new combat management system. Decision to be made in the next few months. S&P 500 qualification: Palantir meets the criteria for the index. Inclusion would make the stock more attractive for a broad range of investors.

My additional thoughts: Palantir is benefiting from the megatrends of digitization and big data. The company has a strong management team with a lot of experience in the technology industry. The stock is still relatively volatile, which investors should be aware of.

The recent rally is not a flash in the pan. Palantir has several aces up its sleeve that speak for a continued positive business development. The stock is still attractively valued and offers potential for a long-term investment.