Despite Big Gains, Palantir Stock (NYSE:PLTR) Still Deserves More Love
2 min read
Palantir Technologies (NYSE:PLTR) stock has been on a tear in the last 12 months, up almost 192%. Still, Palantir stock deserves more love as the company’s AI business continues to gain traction amid favorable macroeconomic trends. The company’s aggressive expansion into commercial capabilities is likely to accelerate revenue growth, paving the way for robust earnings growth. I am bullish on Palantir, as there is compelling evidence to suggest that the company is just getting started.
The Commercial Expansion Is Gaining Momentum
In Q4 2023, Commercial revenue grew 32% year-over-year (YoY) to $284 million, while Government segment revenue grew 11% YoY to $324 million. Although the Government segment still accounts for the bulk of revenue, the Commercial segment continues to grow at much higher rates, indicating the strong momentum behind this business segment. This stellar growth is coming on the back of the success of its AI integration platform.
Artificial Intelligence Platform (AIP) “bootcamps” are proving to be effective in expanding the addressable market opportunity of the company. After setting a goal of executing 500 AIP bootcamps within a year in October, the company has already conducted 560 bootcamps involving 465 organizations.
According to the company’s management, these bootcamps have already helped Palantir reduce sales cycles and accelerate customer acquisition. In Q4 2023, the company reported a doubling of new U.S. commercial deals with a value of over $1 million compared to Q4 2022.
To drive Commercial revenue growth internationally, the company has resorted to forming strategic partnerships. For example, Palantir has partnered with Fujitsu to extend its reach in Japan, enabling the company to bring AIP and data integration capabilities to a new geographic location. Another example is the company’s partnership with SOMPO Care, a leading healthcare insurer in Japan, to deliver real-time data to nursing homes and elder care facilities.
