Palantir Technologies (NYSE: PLTR) once was most associated with its work with governments, helping them better harness the power of their data. But in recent times, this software-as-a-service (SaaS) player has become a key partner of companies as well. That and Palantir’s use of artificial intelligence (AI) to boost its capabilities have helped earnings take off in recent quarters.
Today, Palantir’s U.S. commercial revenue is growing faster than its government revenue. And the company’s AI boot camps, training sessions that offer potential customers an introduction to its services, are driving gains too. Recently, the company reported its highest quarterly profit in its entire 20-year history.
Considering all of this, if you’d invested $10,000 in Palantir five years, ago, how much would you have today? Let’s find out.
A triple-digit increase
Palantir’s stock price has followed these successes, climbing in the triple digits over the past five years. So if you’d invested $10,000 in this innovative company back then, your investment would be worth more than $25,000 today. That’s reason to cheer, but if you hold on to your position well into the future, you may have a second reason to cheer.
It’s important to remember that the AI growth story is in its early days, with analysts predicting the AI market will grow from about $200 billion today to more than $1 trillion by the end of the decade. And Palantir just launched its Artificial Intelligence Platform and boot camps last year, so we’re likely at the very beginning of this growth opportunity.
In the most recent earnings report, Palantir said revenue has been a reflection of “unbridled and growing demand” as potential customers rushed to get in on boot camps — and went on to sign contracts for AIP shortly thereafter. Palantir reported a 40% increase in U.S. commercial revenue in the quarter and expects commercial revenue to climb 45% or more for the year.
All this means that Palantir shares, fueled by revenue growth, could deliver more gains as this AI growth story continues.
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Adria Cimino has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Palantir Technologies. The Motley Fool has a disclosure policy.
If You’d Invested $10,000 in Palantir Technologies Stock 5 Years Ago, Here’s How Much You’d Have Today was originally published by The Motley Fool
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