Veteran fund manager turns heads with Palantir stock price target originally appeared on TheStreet.
Palantir won’t pause here. The stock just reached a new all-time high, closing at $179.54 on July 7 after breaking previous records multiple times this year. It rose another 0.8% to $180 during July 8’s trading.
That marks the stock’s year-to-date growth of 139%.
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On August 4, the AI defense software company posted second-quarter revenue of $1 billion, up 48% year-over-year and marking a milestone analysts hadn’t expected the firm to reach until the fourth quarter. Its adjusted earnings of 16 cents also topped forecasts of 14 cents.
Palantir also raised its full-year guidance to between $4.142 billion and $4.150 billion, up from a prior range of $3.89 billion to $3.90 billion.
“It has been a steep and upward climb — an ascent that is a reflection of the remarkable confluence of the arrival of language models, the chips necessary to power them, and our software infrastructure, one that allows organizations to tether the power of artificial intelligence to objects and relationships in the real world,” CEO Alex Karp wrote in a letter.
Palantir (PLTR) is known for providing AI-driven data analytics software to the U.S. government, military, and commercial clients. The stock soared 340% in 2024 as demand for AI infrastructure surged across sectors.
In the second quarter, Palantir’s U.S. revenues jumped 68% from a year ago to $733 million, largely driven by the U.S. commercial segment, which nearly doubled to $306 million.
Related: Analyst revamps Palantir stock forecast before earnings
Its U.S. government revenues jumped 53% from the year-ago period to $426 million, despite massive spending cuts under President Donald Trump and his Department of Government Efficiency, formerly led by Elon Musk.
Palantir has recently secured a 10-year contract with the U.S. Army worth up to $10 billion. The number is more than three times Palantir’s 2024 revenue of $2.87 billion, making it one of its biggest ever. It could also significantly boost the company’s Remaining Performance Obligations (RPO).
While Palantir’s revenue is on fire, the company is looking to reduce its workforce.
“We’re planning to grow our revenue … while decreasing our number of people,” CEO Alex Karp recently said in an interview with CNBC. “This is a crazy, efficient revolution. The goal is to get 10x revenue and have 3,600 people. We have now 4,100.”
