Stock Owner Cathie Wood Sold $97 Million in Palantir Shares; Question Arises: Should Investors Also Sell PLTR Stocks?
Unfiltered, Unapologetic, No-Holds-Barred: Palantir's Q1 2025 Performance
Straight talk on PLTR dips, soaring valuations, and what lies ahead.
No sugarcoating here, folks! Palantir's stock, trading under the ticker PLTR, has been rollercoaster wild since last year, and now it's swaying just 8% below its record high. At a market cap of a whopping $280B, investors are jittery about its mega-multiples.
From May 5th to the 8th, the queen of the tech world, Cathie Wood's Ark Invest, dumped nearly $97 million worth of PLTR shares. Yet, despite this big sell-off, Palantir held tight as the third-largest holding in Wood's funds, where they still cling onto over $560 million worth of shares.
How Palantir Crushed Q1 2025
Take a wild guess! You'd be right if you said Palantir came out swinging hard in Q1 2025. Not only did they surpass forecasted revenue by the skin of their teeth, but they also tossed out GAAP earnings that left analysts slack-jawed.
With revenue of $884 million, up a whopping 39% YoY and blowing analyst projections of $863 million out of the water, Palantir's impressive quarter didn't stop there. Nefarious GAAP earnings of $0.08 per share came in just below expectations, while adjusted earnings per share of $0.13 hit the mark.
The AI software company's growth was fueled by the explosive expansion of their U.S. operations. US commercial revenue zoomed 71% YoY to $255 million, eclipsing the $1 billion annual run-rate for the first time. Meanwhile, US government revenue barreled ahead 45% to $373 million, highlighting the ever-growing adoption of Palantir's AI capabilities across defense and federal agencies.
On the earnings call, CEO Alex Karp strutted his stuff as the alpha dog of AI implementation, proclaiming the arrival of a "tectonic shift" in the adoption of Palantir's software. CTO Shyam Sankar didn't let Karp hog the limelight, dropping some knowledge that Palantir concentrates on AI demand—the practical applications via their Artificial Intelligence Platform, or AIP - while their competitors concentrate solely on AI supply.
Just a Taste of What's Next for PLTR Stock
Palantir's impressive performance prompted them to bump up their full-year 2025 guidance in a big way. At the midpoint estimate, they're forecasting 2025 sales to hit $3.895 billion, almost $150 million over their earlier projections of $3.75 billion. US commercial revenue is expected to explode at least 68% YoY to more than $1.178 billion. They're also painting a rosy picture of profitability, forecasting adjusted operating income of $1.71 billion and free cash flow of $1.7 billion.
PLTR stock has been a standout in 2025, skyrocketing 53% year-to-date amidst broader tech sector turbulence, earning it the crown as the S&P 500 Index's top performer. This extraordinary bull run has fueled PLTR's forward adjusted price-earnings multiple to an eye-catching 203x. Back then in 2022, the multiple was a mere 34x.
Analysts predict Palantir stock will report adjusted earnings per share of $2.04 in 2029, a hefty increase from $0.41 per share in 2024. If they trade at the same wildly optimistic earnings multiple of 75x, they'll be fetching around $150 in 2029, surpassing their current trading price of $120—meaning a hefty 25% growth over the next four years.
Care to take a wild guess what the average target price for PLTR stock is? Yep, $91, which means investors might need to brace for a potential downside of over 20% from the current levels.
Out of the 20 analysts tracking PLTR stock, a cool three believe it's still a "Strong Buy," while 12 think there's still some life left in it as a "Hold." However, some grumpy Gus' have their pitchforks ready, with one suggesting a "Moderate Sell," and four screaming "Strong Sell."
Good luck, risk takers! You've gotta be a glutton for punishment to keep the faith in this high-flyer.
- Palantir's stock performance in Q1 2025 was impressive, as they surpassed revenue forecasts and reported GAAP earnings that left analysts amazed.
- The growth of Palantir's Q1 2025 revenue was fueled primarily by the explosive expansion of their U.S. operations, with US commercial revenue increasing by 71% YoY and US government revenue growing by 45%.
- Palantir's CEO, Alex Karp, highlighted a 'tectonic shift' in the adoption of their AI capabilities across defense and federal agencies during the earnings call.
- Palantir increased their full-year 2025 revenue guidance significantly, predicting sales of $3.895 billion, a jump of almost $150 million compared to their earlier projections, and painting a rosy picture of profitability.
