To The Moon

🌟🌟🌟Palantir $Palantir Technologies Inc.(PLTR)$  share price has been on a tear this year as it is up a massive 175% year todate and in the past 12 months it has skyrocketed a whopping 400%.  Palantir is possibly the best performing S&P 500 stock this year.

Palantir has just reported an excellent Q3 25 results on November 4.  It has exceeded analysts expectations for the latest earnings, marking its 2nd consecutive quarter with over USD 1 billion in revenue and raising its full year guidance.

Q3 25 Performance Highlights

Palantir reported strong results, driven by surging demand for its AI Platform or AIP in both government and commercial factors.

US revenue grew 77% YoY and 20% QoQ to USD 883 million.

US commercial revenue grew 121% YoY and 29% QoQ to USD 397 million.

US government revenue grew 52% YoY and 14% QoQ to USD 486 million.

Revenue grew 63% YoY and 18% QoQ to USD 1.18 billion.

Closed 204 deals of at least USD 1 million, 91 deals of at least USD 5 million and 53 deals of at least USD 10 million.

Adjusted free cash flow of USD 540 million. 

Adjusted operating income of USD 601 million with 51% margin.

US commercial remaining deal value grew 199% YoY and 30% QoQ to USD 3.6 billion.

Highest ever quarter of US commercial total contract value of USD 1.3 billion, up 342% YoY.

Highest ever quarter of Total Contract Value of USD 2.8 billion, up 151% YoY.

Adjusted EPS of USD 0.21.

Palantir's Partnership with Nvidia

Palantir and Nvidia $NVIDIA(NVDA)$  are collaborating to turn enterprise data into decision intelligence.  Under this new partnership, Nvidia models will be available through AIP, pushing Ontology to the edge through Nvidia's accelerated compute. 

According to Nvidia CEO Jensen Huang  the Palantir Ontology is probably the single most important enterprise stack in the world. 

Palantir Ontology is an operational layer for an organisation that sits on top of the digital assets integrated into the Palantir platform. 

Palantir Ontology organises data into meaningful objects, properties, relationships.  It adds a dynamic layer of actions, business rules and access controls to enable real time analysis, decision making and operational applications for both humans and AI. 

 Is Palantir A Buy or Overvalued? 

The Case for Buying Palantir :

Robust growth : Palantir has delivered strong revenue growth with its US commercial business showing significant acceleration due to high demand for its AIP platform. 

Profitability : Palantir has achieved strong margins and a healthy balance sheet with a robust liquidity position. 

Competitive Advantage : Palantir is recognised as a leader in decision intelligence and AI/ML software  with a moat based on its unique software framework and switching costs. 

Contract wins : Palantir has secured major deals, including a 10 year, USD 10 Billion US Army contract and a USD 1 billion deal with UK's Ministry of Defence. 

Strong guidance :  Palantir raised its full year 2025 revenue and free cash flow guidance. 

The case not to buy due to overvaluation:

High Valuation Metrics : Palantir is considered one of the most expensive software stocks.  It has a P/E ratio of 688.49.  Palantir trades at a massive premium compared to other AI companies.  Some analysts believe that its high price is based on sheer speculation and momentum rather than financial fundamentals. 

Insider Selling : Continued stock selling by company executives has raised concerns among some analysts regarding confidence in the current valuation and future prospects. 

Concluding Thoughts 

Ultimately the decision whether to buy Palantir or take profits hinges on whether an investor believes that  its strong growth and market position, can justify Palantir's high valuation. 

My Personal Take :

Palantir isn't just selling software.  It is selling a world view that data when deployed wisely, can shape institutions, industries and nations.  If you believe in that vision and can stomach volatility, Palantir may still be a buy.

However if you are chasing short term gains, beware of the valuation trap.  The 2 billion dlar quarters were major milestones for Palantir.  What comes next will determine whether Palantir continues to be a multi bagger and generational compounder, or a cautionary tale of AI euphoria. 

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