Palantir’s Growth Outshines Valuation Concerns as Customer Base Expands
Palantir Technologies delivered a record-breaking earnings performance this month, with $1.18 billion in revenue and 204 deals worth at least $1 million. The company’s adjusted operating income margin reached 51%, while its total contract value surged 151% year-over-year to $2.8 billion. Despite these metrics, shares have declined by double digits post-earnings, reflecting broader market anxieties about AI sector valuations.
Harsh Chauhan, a top-ranked investor, acknowledges Palantir’s premium valuation but emphasizes its accelerating customer acquisition—a 45% annual increase—as the critical bullish signal. 'The company is now attracting new customers at a faster pace,' he notes, positioning this trend as the primary reason to own the stock. Palantir’s expansion in automation support and large-scale contracts underscores its competitive moat, even as debates about its pricing persist.
