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Yahoo
16 hours ago
- Business
- Yahoo
Can Palantir Stock Turn $5,000 Invested Today Into $100,000 in the Next Decade?
Palantir stock has advanced more than 2,000% since January 2023, achieving a return that would have turned $5,000 into $107,000. Palantir is a recognized leader in artificial intelligence and machine learning platforms, a market forecasted to grow at 40% annually through 2028. Palantir shares currently trade at 109 times sales, an expensive valuation that is three times higher than that of the next-closest stock in the S&P 500. 10 stocks we like better than Palantir Technologies › Palantir Technologies (NASDAQ: PLTR) has been one of the hottest stocks on the market in recent years. Its share price has soared more than 2,000% since January 2023, achieving a return that would have turned a $5,000 investment into $107,000 over that period. Will Palantir shareholders see similar gains over the next decade? Here's what investors should know. Palantir provides data analytics and artificial intelligence (AI) software that enables businesses to manage and make sense of complex information. Its platforms have applications across almost every industry. As an example, Archer Aviation recently adopted Palantir's Foundry and Artificial Intelligence Platform (AIP) products to improve its aircraft manufacturing capabilities, and the companies will collaborate to design critical aviation systems in the future. Forrester Research recognized Palantir as a leader in AI and machine learning platforms last August, awarding its AIP product higher scores than similar tools from Alphabet's Google, Microsoft, and Databricks, a private company currently valued at $75 billion. The report highlighted differentiated software architecture as a key strength. "Palantir is quietly becoming one of the largest players in this market," wrote analyst Mike Gualtieri. Palantir continued to show near-flawless execution in the first quarter. Revenue increased 39% to $884 million, marking the seventh consecutive acceleration (as shown in the chart below), due to particularly strong growth in the U.S. commercial and government segments. And non-GAAP (non-generally accepted accounting principles) net income increased 70% to $334 million. Management attributed the strong results to the demand for AIP. Importantly, Chief Technology Officer Shyam Sankar told analysts on the first-quarter earnings call, "Our foundational investments in ontology and infrastructure have positioned us to uniquely deliver on AI demand now and in the years ahead." That is encouraging because International Data Corporation estimates AI platform spending will increase by 40% annually through 2028. Palantir must increase at least 20 times in value (equivalent to a 1,900% return) over the next decade to turn $5,000 into $100,000. As mentioned, the stock has already notched returns of that magnitude once, and it did so in much less time. Shares advanced by over 2,000% in the last 30 months. It's worth noting that four companies in the S&P 500 achieved sufficient gains to turn $5,000 into $100,000 in the last decade, as listed below. Palantir is not included because the company did not go public until 2020. Nvidia: +26,530% Advanced Micro Devices: +4,790% Axon Enterprise: +2,180% Texas Pacific Land: +2,060% However, Palantir's share price is unlikely to increase 20-fold during the next decade. I say that because the company is already worth $324 billion. Multiplying that by 20 would bring its market value to $6.5 trillion, which seems implausible, given that Microsoft is currently the world's largest company and its market value is just $3.5 trillion. Additionally, Palantir stock would need to gain 35% annually over the next decade to achieve a total return of 1,900%. That seems particularly unlikely, considering shares already trade at a shockingly expensive 109 times sales. For context, the next-closest member of the S&P 500 is Texas Pacific Land at 35 times sales. Consider this: Even if Palantir trades at 40 times sales in 10 years (which would still be the most expensive stock in the S&P 500 at current prices), revenue would need to increase by 49% annually during that period for the company to achieve a $6.5 trillion market value. Palantir's revenue increased by only 39% last quarter, so the odds of revenue growing at 49% annually for the next 10 years are remote at best. Here's the bottom line: Palantir is executing on a tremendous market opportunity, but the current valuation is absurd. Personally, I think investors should steer clear of the stock at its current price, or at least keep their position sizing very small. At some point, valuation will matter, and Palantir shares could crash. Before you buy stock in Palantir Technologies, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Palantir Technologies wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $664,089!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $881,731!* Now, it's worth noting Stock Advisor's total average return is 994% — a market-crushing outperformance compared to 172% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of June 9, 2025 Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool's board of directors. Trevor Jennewine has positions in Axon Enterprise, Nvidia, and Palantir Technologies. The Motley Fool has positions in and recommends Advanced Micro Devices, Alphabet, Axon Enterprise, Microsoft, Nvidia, and Palantir Technologies. The Motley Fool recommends the following options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. The Motley Fool has a disclosure policy. Can Palantir Stock Turn $5,000 Invested Today Into $100,000 in the Next Decade? was originally published by The Motley Fool
Yahoo
17 hours ago
- Business
- Yahoo
Can Palantir Stock Turn $5,000 Invested Today Into $100,000 in the Next Decade?
Palantir stock has advanced more than 2,000% since January 2023, achieving a return that would have turned $5,000 into $107,000. Palantir is a recognized leader in artificial intelligence and machine learning platforms, a market forecasted to grow at 40% annually through 2028. Palantir shares currently trade at 109 times sales, an expensive valuation that is three times higher than that of the next-closest stock in the S&P 500. 10 stocks we like better than Palantir Technologies › Palantir Technologies (NASDAQ: PLTR) has been one of the hottest stocks on the market in recent years. Its share price has soared more than 2,000% since January 2023, achieving a return that would have turned a $5,000 investment into $107,000 over that period. Will Palantir shareholders see similar gains over the next decade? Here's what investors should know. Palantir provides data analytics and artificial intelligence (AI) software that enables businesses to manage and make sense of complex information. Its platforms have applications across almost every industry. As an example, Archer Aviation recently adopted Palantir's Foundry and Artificial Intelligence Platform (AIP) products to improve its aircraft manufacturing capabilities, and the companies will collaborate to design critical aviation systems in the future. Forrester Research recognized Palantir as a leader in AI and machine learning platforms last August, awarding its AIP product higher scores than similar tools from Alphabet's Google, Microsoft, and Databricks, a private company currently valued at $75 billion. The report highlighted differentiated software architecture as a key strength. "Palantir is quietly becoming one of the largest players in this market," wrote analyst Mike Gualtieri. Palantir continued to show near-flawless execution in the first quarter. Revenue increased 39% to $884 million, marking the seventh consecutive acceleration (as shown in the chart below), due to particularly strong growth in the U.S. commercial and government segments. And non-GAAP (non-generally accepted accounting principles) net income increased 70% to $334 million. Management attributed the strong results to the demand for AIP. Importantly, Chief Technology Officer Shyam Sankar told analysts on the first-quarter earnings call, "Our foundational investments in ontology and infrastructure have positioned us to uniquely deliver on AI demand now and in the years ahead." That is encouraging because International Data Corporation estimates AI platform spending will increase by 40% annually through 2028. Palantir must increase at least 20 times in value (equivalent to a 1,900% return) over the next decade to turn $5,000 into $100,000. As mentioned, the stock has already notched returns of that magnitude once, and it did so in much less time. Shares advanced by over 2,000% in the last 30 months. It's worth noting that four companies in the S&P 500 achieved sufficient gains to turn $5,000 into $100,000 in the last decade, as listed below. Palantir is not included because the company did not go public until 2020. Nvidia: +26,530% Advanced Micro Devices: +4,790% Axon Enterprise: +2,180% Texas Pacific Land: +2,060% However, Palantir's share price is unlikely to increase 20-fold during the next decade. I say that because the company is already worth $324 billion. Multiplying that by 20 would bring its market value to $6.5 trillion, which seems implausible, given that Microsoft is currently the world's largest company and its market value is just $3.5 trillion. Additionally, Palantir stock would need to gain 35% annually over the next decade to achieve a total return of 1,900%. That seems particularly unlikely, considering shares already trade at a shockingly expensive 109 times sales. For context, the next-closest member of the S&P 500 is Texas Pacific Land at 35 times sales. Consider this: Even if Palantir trades at 40 times sales in 10 years (which would still be the most expensive stock in the S&P 500 at current prices), revenue would need to increase by 49% annually during that period for the company to achieve a $6.5 trillion market value. Palantir's revenue increased by only 39% last quarter, so the odds of revenue growing at 49% annually for the next 10 years are remote at best. Here's the bottom line: Palantir is executing on a tremendous market opportunity, but the current valuation is absurd. Personally, I think investors should steer clear of the stock at its current price, or at least keep their position sizing very small. At some point, valuation will matter, and Palantir shares could crash. Before you buy stock in Palantir Technologies, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Palantir Technologies wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $664,089!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $881,731!* Now, it's worth noting Stock Advisor's total average return is 994% — a market-crushing outperformance compared to 172% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of June 9, 2025 Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool's board of directors. Trevor Jennewine has positions in Axon Enterprise, Nvidia, and Palantir Technologies. The Motley Fool has positions in and recommends Advanced Micro Devices, Alphabet, Axon Enterprise, Microsoft, Nvidia, and Palantir Technologies. The Motley Fool recommends the following options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. The Motley Fool has a disclosure policy. Can Palantir Stock Turn $5,000 Invested Today Into $100,000 in the Next Decade? was originally published by The Motley Fool Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
13-06-2025
- Business
- Yahoo
Palantir Stock Is on a Crash Course With History That Will Likely Be Very Costly for Investors
Palantir Technologies was the best-performing stock in the S&P 500 last year, and the company is once again leading the benchmark index this year. Palantir is a recognized leader in artificial intelligence (AI) and machine learning platforms, a market forecast to grow at 41% annually through 2028. Palantir traded at 109 times sales in June, making its stock three times more expensive than the next closest company in the S&P 500. 10 stocks we like better than Palantir Technologies › Palantir Technologies (NASDAQ: PLTR) has created astounding wealth for shareholders in a very short period. It was the best-performing member of the S&P 500 (SNPINDEX: ^GSPC) last year, and the company is leading the index higher again this year. In total, Palantir stock has returned 695% since January 2024 and 2,000% since January 2023. However, Palantir is also the most expensive stock in the S&P 500, as measured by price-to-sales ratio. In fact, it is one of the most expensive software stocks in recent history, and other every other software stock that had a similar valuation in the last two decades eventually crashed. Here's what investors should know. ChatGPT showed that artificial intelligence (AI) systems could not only generate media content and engage in conversation, but also reason through problems and give concise answers to complex questions. It became the fastest-growing consumer application in history after its launch in late 2022, and businesses have since been racing to infuse their products with generative AI. Palantir was ideally positioned to capitalize on that trend. The company already developed analytics solutions, so introducing an adjacent artificial intelligence platform that let users engage data conversationally was a natural next step. Palantir introduced such a product in 2023. Its Artificial Intelligence Platform (AIP) is a large language model orchestration tool that lets businesses apply generative AI to their operations. The company says it is uniquely positioned to meet demand for AI because it has spent years developing its ontology-based software. To elaborate, an ontology is a framework that connects digital data to real-world assets, creating a feedback loop that lets users identify nuanced insights that continuously improve to support better decision-making over time. AIP lets businesses interact with ontology data in natural language, making it easy to apply generative AI to analytics workflows. Palantir CTO Ryan Taylor said last year, "Our unique capability lies in moving from prototype to production." In other words, Palantir sees its software as better suited than competing products to helping businesses build AI tools. Forrester Research recently recognized Palantir as the technology leader in artificial intelligence and machine learning platforms. And AI platform sales are forecast to increase at 41% annually through 2028, according to International Data Corporation. That puts Palantir on a glidepath to strong revenue growth for years to come. Palantir hit a record high of $136 per share on June 11. On the same day, its price-to-sales (P/S) ratio reached a record high of 109. The next-closest stock in the S&P 500 is Texas Pacific Land, at 35 times sales. Palantir is three times more expensive, so its price could fall 67% and it would still be the most expensive stock in the S&P 500. In fact, Palantir is one of the most expensive software stocks in recent history. I reviewed valuations of more than 50 software companies during the last two decades, and only five ever achieved P/S multiples above 105: Cloudflare traded at 114 times sales on Nov. 18, 2021. The stock eventually declined 83%. SentinelOne traded at 106 times sales on Sept. 16, 2021. The stock eventually declined 82%. Snowflake traded at 184 times sales on Dec. 8, 2020. The stock eventually declined 72%. SoundHound AI traded at 111 times sales on Dec. 26, 2024. The stock eventually declined 70%. Zoom Communications traded at 124 times sales on Oct. 19, 2020. The stock eventually declined 90%. These stocks have something in common, apart from achieving a valuation above 105 times sales: Every single one eventually fell at least 70% from their peak valuation, with an average peak-to-trough decline of 80%. We can apply that figure to Palantir to make an educated guess about the future. Specifically, Palantir traded at $136 per share when it hit its peak valuation of 109 times sales. So, if its performance matches the historical average, the stock will eventually fall 80% to $27 per share. Here's the big picture: Palantir is an excellent business that should continue to benefit as enterprises invest in artificial intelligence. But investors need to differentiate between the business and the stock. Right now, the stock trades at an absurdly expensive valuation, which means the risk-reward profile is heavily skewed toward risk. To be clear, Palantir stock may continue soaring from here. No one can predict the future. But valuation always (eventually) matters to the market, and history says Palantir is on a crash course with history. Every other stock that has achieved a similar P/S ratio in the last two decades has eventually crashed. Before you buy stock in Palantir Technologies, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Palantir Technologies wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $657,871!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $875,479!* Now, it's worth noting Stock Advisor's total average return is 998% — a market-crushing outperformance compared to 174% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of June 9, 2025 Trevor Jennewine has positions in Palantir Technologies. The Motley Fool has positions in and recommends Cloudflare, Palantir Technologies, Snowflake, and Zoom Communications. The Motley Fool has a disclosure policy. Palantir Stock Is on a Crash Course With History That Will Likely Be Very Costly for Investors was originally published by The Motley Fool Sign in to access your portfolio
Qatar Tribune
10-06-2025
- Business
- Qatar Tribune
Plenty of polish, little progress: Apple's WWDC falls flat
Agencies After a rocky start in the fierce competition among tech giants to harness artificial intelligence, Apple aimed to recover its momentum on Monday at its annual Worldwide Developers Conference (WWDC), where the focus remained largely on gradual improvements and aesthetic updates to its technology. The presummer rite, which attracted thousands of developers from nearly 60 countries to Apple's Silicon Valley headquarters, was more subdued than the feverish anticipation that surrounded the event during the previous two years. Apple highlighted plans for more AI tools designed to simplify people's lives and make its products even more intuitive while also providing an early glimpse at the biggest redesign of its iPhone software in a decade. In doing so, Apple executives refrained from issuing bold promises of breakthroughs that punctuated recent conferences, prompting CFRA analyst Angelo Zino to deride the event as a 'dud' in a research note. In 2023, Apple unveiled a mixed-reality headset that has been little more than a niche product, and last year WWDC trumpeted its first major foray into the AI craze with an array of new features highlighted by the promise of a smarter and more versatile version of its virtual assistant, Siri – a goal that has hasn't been achieved yet. 'This work needed more time to reach our high-quality bar,' Craig Federighi, Apple's top software executive, said Monday at the outset of the conference. The company didn't provide a precise timetable for Siri's AI upgrade to be finished but indicated it won't happen until next year, at the earliest. 'The silence surrounding Siri was deafening,' said Forrester Research analyst Dipanjan Chatterjee. 'No amount of text corrections or cute emojis can fill the yawning void of an intuitive, interactive AI experience that we know Siri will be capable of when ready. We just don't know when that will happen. The end of the Siri runway is coming up fast, and Apple needs to lift off.' The showcase unfolded amid nagging questions about whether Apple has lost some of the mystique and innovative drive that turned it into a tech trendsetter during its nearly 50-year history. Instead of making a big splash as it did with the Vision Pro headset and its AI suite, Apple took a mostly low-key approach that emphasized its effort to spruce up the look of its software with a new design called 'Liquid Glass' while also unveiling a new hub for its video games and new features like a 'Workout Buddy' to help manage physical promised to make Apple's software more compatible with the increasingly sophisticated computer chips that have been powering its products while also making it easier to toggle between the iPhone, iPad, and Mac.'Our product experience has become even more seamless and enjoyable,' Apple CEO Tim Cook told the crowd as the 90-minute showcase wrapped up. IDC analyst Francisco Jeronimo said Apple seemed to be largely using Monday's conference to demonstrate the company still has a blueprint for success in AI, even if it's going to take longer to realize the vision that was presented a year ago. 'This year's event was not about disruptive innovation, but rather careful calibration, platform refinement and developer enablement – positioning itself for future moves rather than unveiling game-changing technologies,' Jeronimo said. Besides redesigning its software. Apple will switch to a method that automakers have used to telegraph their latest car models by linking them to the year after they first arrive at dealerships. That means the next version of the iPhone operating system, due out this autumn, will be known as iOS 26 instead of iOS 19 – as it would be under the previous naming approach that has been used since the device's 2007 debut. The iOS 26 upgrade is expected to be released in September, around the same time Apple traditionally rolls out the next iPhone models. In an early sign that AI wasn't going to be a focal point of this year's conference, Apple opened the proceedings with a short video clip featuring Federighi speeding around a track in a Formula 1 race car. Although it was meant to promote the June 27 release of the Apple film, 'F1' starring Brad Pitt, the segment could also be viewed as an unintentional analogy to the company's attempt to catch up to the rest of the pack in AI technology. While some of the new AI tricks compatible with the latest iPhones began rolling out late last year as part of free software updates, the delays in a souped-up Siri became so glaring that the chastened company stopped promoting it in its marketing campaigns earlier this year. While Apple has been struggling to make AI that meets its standards, the gap separating it from other tech powerhouses is widening. Google keeps packing more AI into its Pixel smartphone lineup while introducing more of the technology into its search engine to dramatically change the way it works. Samsung, Apple's biggest smartphone rival, is also leaning heavily into AI. Meanwhile, ChatGPT recently struck a deal that will bring former Apple design guru Jony Ive into the fold to work on a new device expected to compete against the iPhone.
CTV News
09-06-2025
- CTV News
Apple heads into annual showcase reeling from AI missteps, tech upheaval and Trump's trade war
After stumbling out of the starting gate in Big Tech's pivotal race to capitalize on artificial intelligence, Apple will try to regain its footing Monday at its annual Worldwide Developers Conference. The presummer rite, which attracts thousands of developers to Apple's Silicon Valley headquarters, is expected to be more subdued than the feverish anticipation that surrounded the event during the previous two years. In 2023, Apple unveiled a mixed-reality headset that has been little more than a niche product, and last year WWDC trumpeted its first major foray into the AI craze with an array of new features highlighted by the promise of a smarter and more versatile version of its virtual assistant, Siri. But heading into this year's showcase, Apple faces nagging questions about whether the nearly 50-year-old company has lost some of the mystique and innovative drive that turned it into a tech trendsetter. Instead of making a big splash as it did with the Vision Pro headset, Apple this year is expected to focus on an overhaul of its software that may include a new, more tactile look for the iPhone's native apps and a new nomenclature for identifying its operating system updates. Even though it might look like Apple is becoming a technological laggard, Forrester Research analyst Thomas Husson contends the company still has ample time to catch up in an AI race that's 'more of a marathon, than a sprint. It will force Apple to evolve its operating systems.' If reports about its iOS naming scheme pan out, Apple will switch to a method that automakers have used to telegraph their latest car models by linking them to the year after they first arrive at dealerships. That would mean the next version of the iPhone operating system due out this autumn will be known as iOS 26 instead of iOS 19 — as it would be under the current sequential naming approach. Whatever it's named, the next iOS will likely be released as a free update in September, around the same time as the next iPhone models if Apple follows its usual road map. Meanwhile, Apple's references to AI may be less frequent than last year when the technology was the main attraction. While some of the new AI tricks compatible with the latest iPhones began rolling out late last year as part of free software updates, Apple still hasn't been able to soup up Siri in the ways that it touted at last year's conference. The delays became so glaring that a chastened Apple retreated from promoting Siri in its AI marketing campaigns earlier this year. 'It's just taking a bit longer than we thought,' Apple CEO Tim Cook told analysts last month when asked about the company's headaches with Siri. 'But we are making progress, and we're extremely excited to get the more personal Siri features out there.' While Apple has been struggling to make AI that meets its standards, the gap separating it from other tech powerhouses is widening. Google keeps packing more AI into its Pixel smartphone lineup while introducing more of the technology into its search engine to dramatically change the way it works. Samsung, Apple's biggest smartphone rival, is also leaning heavily into AI. Meanwhile, ChatGPT recently struck a deal that will bring former Apple design guru Jony Ive into the fold to work on a new device expected to compete against the iPhone. 'While much of WWDC will be about what the next great thing is for the iPhone, the unspoken question is: What's the next great thing after the iPhone?' said Dipanjan Chatterjee, another analyst for Forrester Research. Besides facing innovation challenges, Apple also faces regulatory threats that could siphon away billions of dollars in revenue that help finance its research and development. A federal judge is currently weighing whether proposed countermeasures to Google's illegal monopoly in search should include a ban on long-running deals worth $20 billion annually to Apple while another federal judge recently banned the company from collecting commission on in-app transactions processed outside its once-exclusive payment system. On top of all that, Apple has been caught in the cross-hairs of President Donald Trump's trade war with China, a key manufacturing hub for the Cupertino, California, company. Cook successfully persuaded Trump to exempt the iPhone from tariffs during the president's first administration, but he has had less success during Trump's second term, which seems more determined to prod Apple to make its products in the U.S.. 'The trade war and uncertainty linked to the tariff policy is of much more concern today for Apple's business than the perception that Apple is lagging behind on AI innovation,' Husson said. The multi-dimensional gauntlet facing Apple is spooking investors, causing the company's stock price to plunge by nearly 20% so far this year — a decline that has erased $750 billion in shareholder wealth. After beginning the year as the most valuable company in the world, Apple now ranks third behind longtime rival Microsoft, another AI leader, and AI chipmaker Nvidia. Michael Liedtke, The Associated Press
